🗓 Tuesday, October 21, 2025
► Europe mixed – strong earnings offset by stronger dollar and cautious mood
European stocks were little changed as investors weighed upbeat corporate results against a stronger USD and profit taking after recent gains. Earnings from GM lifted sentiment, while miners lagged due to weaker gold and silver prices. Stoxx 600 -0.02%, DAX -0.15%, CAC 40 +0.1%, FTSE 100 +0.2%, FTSE MIB +0.7%, IBEX +0.2%. Bund 10Y 2.59% (+0.01%), UK 10Y 4.52% (-0.01%). EUR/USD 1.161 (-0.3%), GBP/USD 1.337 (-0.2%), USD/JPY 151.9 (+0.8%). Investors stayed cautious ahead of UK inflation data tomorrow and delayed US CPI on Friday, while dip-buying remains the prevailing trend.
► Wall Street consolidates – earnings keep rally intact despite muted data
US markets traded sideways as the strong start to earnings season meets a lack of new macro catalysts due to the ongoing government shutdown. The energy sector (we are LONG in XOM 👏) is outperforming thanks to gains in oil & gas prices. S&P 500 -0.05%, Nasdaq 100 -0.05%, Dow -0.05%. US 10Y 3.98% (flat). GM +6% after strong Q3 earnings and raised guidance; Zions +3% extended gains after recovering from last week’s panic sell-off. Investors continue to buy dips but will soon become likely more cautious ahead of CPI data. The USD extended its advance for a third day, pressuring commodities. Despite the consolidation, the overall tone remains bullish with strong inflows and improving corporate outlooks supporting equities.
► Asia mixed – Japan reacts to Takaichi win; China tech drives regional momentum
Asian markets showed a mixed tone after Japan’s parliament confirmed Sanae Takaichi as the country’s first female prime minister, raising hopes for further fiscal stimulus. Nikkei +0.3%, Hang Seng +0.7%, Shanghai +1.4%, Shenzhen +2.1%, Kospi +0.2%, Taiwan +0.2%, ASX +0.7%, Nifty +0.1%. USD/JPY 151.9 (+0.8%). Chinese and Hong Kong tech shares led gains as investors continued to position for AI and export recovery themes, while Japan saw mild profit taking after its rally toward 50,000.
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