Global markets saw heightened volatility as early optimism over easing trade tensions and upbeat earnings momentum faded amid renewed concerns about US regional bank stability and a slowing global economy. The IMF’s October World Economic Outlook projected softer global growth, with risks remaining tilted to the downside. Midweek, market turbulence intensified following fresh signs of stress in US regional banks, driving safe-haven demand as the VIX spiked and gold hit record levels. By week’s end, investors turned their focus to the upcoming US CPI release and major tech earnings expected to shape sentiment in the days ahead.
FX Market reactions
- US Dollar: Started the week softer amid dovish Fed tones, then was pressured further by risk-off moves and lower yields.
- Euro: Strengthened above $1.17 as sentiment improved on Eurozone data and dollar weakness.
- Sterling: Struggled on a weak domestic outlook and deficit data, remaining below recent highs.
- Japanese Yen: Rallied as risk aversion soared on US bank and trade fears, breaking below 150 vs the dollar at its strongest.
Commodities Market reactions
- Gold & Silver: Surged to new all-time highs, with gold topping $4,200/oz and silver climbing alongside, as haven demand soared on global uncertainty, fiscal risks, and policy volatility.
- Oil: Retreat continued, crude prices fell further on concerns about global growth and ample supply; OPEC+ supply speculation weighed on sentiment.
- Agriculture & Base Metals: Remained pressured—grains and copper dipped, while rare earth prices became volatile in response to fresh US-China trade frictions.
Indices Market reactions
- US Equities: Early tech rally faded as worries over banks and macro conditions hit sentiment; S&P 500 slipped 0.6% for the week after swings in banks and volatility spikes.
- Europe: Outperformed Wall Street as earnings from names like Nestlé and LVMH lifted mood, though overall gains were modest amid global headwinds.
- Asia-Pacific: Struggled; China lagged on continued slowdown signals, while Japan's Nikkei was resilient on leadership stability but faced volatility.
Get ready for the week ahead
Visit our market calendar to see all the key economic data, earnings, and events that could move the markets. Plan your trades before the action starts.
Trading forex and futures is high-risk and may result in total loss. Use risk capital only and assess your experience before trading with ATC Brokers.
While ATC Brokers Limited takes reasonable care to ensure the information provided is reliable, no warranty is given as to its accuracy or completeness, and no liability is accepted for any errors or omissions.
