By Friday’s close, the Dow Jones Index (US30) rose by 0.16% (weekly -1.49%). The S&P 500 Index (US500) gained 0.13% (weekly -2.23%). The tech-heavy Nasdaq (US100) closed lower at 0.28% (-4.04%). Sentiment was supported by hopes of progress in resolving the government shutdown. The latest inflation expectations data came out mixed: one-year inflation expectations rose from 4.6% to 4.7%, while long-term expectations fell from 3.9% to 3.6%. Friday’s top gainers included Exxon Mobil, T-Mobile, and Coca-Cola (+2% and above), while the tech sector, including Tesla (-4%), Meta, and Oracle (-2%), continued to face pressure from concerns over inflated valuations of AI companies.
The Canadian dollar strengthened to 1.4 USD, rebounding from a seven-month low of 1.41 after strong labor market data. Unemployment fell to 6.9%, employment increased, and wage growth accelerated to 4% – the highest in eight months and above current inflation. This reinforced expectations that the Bank of Canada has ended its rate-cutting cycle, as the economy remains resilient and core inflation stays above target.
In October, inflation in Mexico slowed as expected. Annual inflation eased to 3.57% in October (from 3.76% in September), the first decline in three months and in line with the prognosis of 3.56%. Core inflation stood at 4.28% – the highest since April 2024 and close to market expectations (4.27%).
European stock markets fell on Friday. Germany’s DAX (DE40) dropped 0.69% (weekly -1.75%), France’s CAC 40 (FR40) closed down 0.18% (weekly -2.08%), Spain’s IBEX 35 (ES35) fell by 1.34% (weekly -0.82%), and the UK’s FTSE 100 (UK100) closed negative 0.55% (weekly -0.36%). European equities opened in the “green zone” on Monday amid improved risk appetite. Optimism grew after the US Senate approved an initial funding bill, raising hopes for a swift end to the record-long government shutdown.
On Monday, silver rose above $49 per ounce, hitting a three-week high amid dollar weakness and growing concerns about the US economy. The University of Michigan Consumer Sentiment Index fell to 50.3 – the second-worst reading in history, against the backdrop of the prolonged government shutdown. The market remains divided ahead of the Fed’s December decision, with the probability of a 25 bps rate cut estimated at around 67%.
Asian markets traded mixed last week. Japan’s Nikkei 225 (JP225) fell by 2.62%, China’s FTSE China A50 (CHA50) rose by 1.18%, Hong Kong’s Hang Seng (HK50) gained 0.93%, while Australia’s ASX 200 (AU200) posted a five-day decline of 1.00%.
In October 2025, consumer prices in China rose 0.2% year-over-year. This was the first increase in consumer inflation since June and the fastest pace since January. Core inflation, excluding food and energy, rose 1.2% year-over-year, the highest in 20 months. The offshore yuan remained around 7.12 per dollar, trading sideways.
The Australian dollar climbed above $0.65 after comments from RBA Deputy Governor Andrew Hauser on the need to maintain tight policy to curb inflation. He noted that GDP growth was the strongest since the early 1980s and demand remains slightly above potential, limiting room for easing. The RBA previously kept rates at 3.6%, and markets still expect a possible cut next year, though some believe the easing cycle may be over. Additional support for the AUD came from improved global sentiment and easing trade tensions between the US and China.
The Japanese government plans to finalize its first major economic package on November 21. The measures focus on supporting weak recovery, tax incentives for 17 industries, and maintaining low interest rates: the cabinet will urge the Bank of Japan to target strong economic growth with stable prices. The package includes steps to ease the burden of high living costs, stimulate investment, crisis management, and strengthen defense. Authorities pledged close coordination with the Bank of Japan to prevent a return to deflation.
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