Overview

• Federal Reserve Chair Jerome Powell flagged rising downside risks to employment and suggested quantitative tightening could end soon, reinforcing expectations for additional 2025 rate cuts.
• JPMorgan, Goldman Sachs, Citigroup and Wells Fargo topped third‑quarter forecasts, with JPMorgan reporting a 12% profit rise, helping stabilize sentiment after early selloffs.
• Safe‑haven flows persisted as spot gold set fresh records above $4,100–$4,200 an ounce and the dollar eased, while Treasury yields fell on growing Fed‑easing bets.
• U.S.–China frictions lingered with both sides imposing extra port fees, Trump threatening 100% tariffs in response to rare‑earth curbs, and China sanctioning U.S. units of Hanwha Ocean.
• Stocks recovered in Asia and gained in Europe as investors repriced easing, though risks stayed elevated with the ongoing U.S. government shutdown limiting official economic data.