🗓 Monday, October 20, 2025
► Europe higher – optimism returns amid trade & earnings strength
European stocks advanced as easing US-China tensions and upbeat earnings bolstered risk appetite. Investors shrugged off recent credit jitters, with bank shares rebounding alongside tech and consumer sectors. Stoxx 600 +0.7%, DAX +1.3%, CAC 40 near flat (-0.1%), FTSE 100 +0.5%, FTSE MIB +1.4%, IBEX +1.2%. Bund 10Y 2.59% (+1bp), UK 10Y 4.52% (-1bp). EUR/USD 1.166 (flat), GBP/USD 1.341 (-0.1%), USD/JPY 150.7 (+0.1%). Sentiment was further supported by renewed confidence in trade negotiations and resilient earnings, though volatility remains elevated as investors selectively take profits after recent gains.
► Wall Street higher – solid week ends with inflows and trade optimism
US markets finished the week on a positive note as investors embraced dip-buying amid easing trade worries and strong Q3 results. S&P 500 +0.4%, Nasdaq 100 +0.7%, Dow +0.5%. Regional banks rebounded (KRE +1.6%), while large caps gained after Trump expressed optimism ahead of upcoming talks with Xi. US 10Y 4.00% (no change), DXY +0.1%. Fed commentary remained dovish, supporting expectations for an October rate cut. Despite persistent uncertainties, US equities saw the largest inflows since August, highlighting investors’ confidence in the AI and earnings-driven bull trend – though intermittent profit taking remains a recurring theme.
► Asia higher – trade thaw and Wall Street gains lift sentiment
Asian equities followed Wall Street higher as optimism around US-China negotiations boosted risk appetite. Nikkei +1.3%, Hang Seng +2.4%, Shanghai +0.6%, Shenzhen +1.0%, Kospi +1.8%, Taiwan +1.4%, ASX +0.4%, Nifty +0.5%. USD/JPY 150.7 (+0.1%). Chinese and Korean tech shares led the rally, supported by hopes that tariff threats could ease and AI-related capital spending remains strong. Markets continue to attract inflows despite short-term volatility, with investors buying dips after last week’s profit-taking phase.
Subscribe to see more
