🗓 Tuesday, October 28, 2025
► Europe mixed – solid earnings offset mild consolidation ahead of Fed
European markets traded mixed as investors took some profits after a record-setting run, while earnings and trade optimism continued to underpin sentiment. Stoxx 600 -0.2%, DAX -0.02%, CAC 40 -0.1%, FTSE 100 +0.3%, FTSE MIB +0.2%, IBEX +0.2%. Bund 10Y 2.62% (flat), UK 10Y 4.39% (-1bp). EUR/USD 1.164 (flat), GBP/USD 1.329 (-0.3%), USD/JPY 152.1 (-0.5%). HSBC +3% after strong earnings, BNP Paribas -2.7% after credit losses, Novartis -3.4% after missing profit expectations, while Nordex +10% after guidance raise. Utilities gained while basic resources and tech softened temporarily. Overall tone remained upbeat as investors awaited the Fed’s policy decision and Trump-Xi summit later this week.
► Wall Street higher – earnings optimism and Fed cut expectations drive rally
US markets extended gains with all major indices trading near record highs. S&P 500 +0.15%, Nasdaq 100 +0.20%, Dow +0.5%. UPS +12% and UnitedHealth +4% after strong Q3 results; PayPal +13% after announcing integration with OpenAI’s ChatGPT wallet; Wayfair +12% on earnings beat; Royal Caribbean -8% on weak guidance. Amazon shares rose modestly despite after historic layoffs (30K jobs). Investors priced in a 96% probability of a 25bp Fed rate cut tomorrow, with expectations for another reduction in December. The S&P 500 saw its first-ever close above 6,800 yesterday, reflecting strong liquidity, robust earnings, and persistent AI enthusiasm.
► Asia mixed – consolidation after strong rally, trade deal optimism intact
Asian equities were mostly lower following Wall Street’s slight consolidation in pre-market trading, though optimism ahead of the Trump-Xi meeting supported regional sentiment. Nikkei -0.6%, Kospi -0.8%, Hang Seng -0.3%, Shanghai -0.2%, Shenzhen -0.4%, ASX -0.5%, Taiwan -0.2%, Nifty -0.1%. USD/CNY 7.10 (-0.1%), USD/JPY 152.1 (-0.5%). Japan and South Korea saw profit taking after record highs, while China’s yuan strengthened to its highest level in nearly a year amid trade progress. Gains in chip and AI-related sectors helped limit downside.
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