US-China Trade Deal Boosts Markets; US Stocks Hit All-Time Highs
Key Takeaways
- US, China agree on trade deal framework before October 31 summit, boosting market optimism.
- US stocks hit all-time highs amid Fed rate cut hopes and strong tech earnings.
- US dollar surges to 153.12 yen amid trade talks, expected Fed rate cuts.
- PJT Partners CEO warns AI investments could cause major economic disruptions globally.
- India's 2025 IPO median returns drop to 2.9%, down from 22% in 2024.
Top Stories
US-China trade deal framework boosts markets ahead of October 31 summit
On October 27, 2025, US and Chinese officials agreed on a trade deal framework addressing tariffs and rare earths, easing oil prices and boosting market optimism ahead of the October 31 summit in South Korea. Investors remain cautious as UBS warns of potential sell-offs if the deal fails, highlighting key economic and market impacts.
US stocks hit all-time highs amid Fed rate cut hopes and strong tech earnings
On October 27, 2025, US stocks reached record highs driven by big tech earnings and anticipation of a Federal Reserve rate cut, despite rising hedging costs amid trade and economic uncertainties. Analysts highlight tech sector strength and cautious optimism in market trends and financial policies.
US dollar surges to two-week high against yen amid trade and monetary policy shifts
On October 27-28, 2025, the US dollar rose to 153.12 yen, driven by global trade talks and expectations of Fed rate cuts versus Bank of Japan's potential hikes. Market dynamics reflect monetary policy divergence and economic policy impacts on currency valuations.
PJT Partners CEO warns AI investments could cause major economic disruptions
On October 28, 2025, Paul Taubman cautioned at the Riyadh summit that billions invested in AI for data centers and energy may trigger profound second- and third-order shocks to the global economy.
India's 2025 IPO median returns drop to 2.9%, down from over 20% in prior years
In 2025, India's IPO median returns one month post-listing fell to 2.9%, a sharp decline from 22% in 2024, reflecting increased investor selectivity and market trend shifts.
Financial Analysis
ECB reports tightening financing conditions for SMEs and large firms in Q3 2025
On October 27, 2025, the European Central Bank's survey revealed tighter financing conditions for both SMEs and large firms in the euro area, reversing previous easing trends and impacting economic policies.
Schroder names Indonesian bonds and rupiah top Asian picks amid growth policies
On October 28, 2025, Schroder Investment Management favored Indonesian bonds and rupiah, citing government growth efforts and expected interest rate cuts attracting foreign investment.
Market Insights
Qualcomm launches AI200 and AI250 chips targeting AI data center market
On October 27, 2025, Qualcomm announced AI200 and AI250 chips for 2026-2027, aiming to compete with Nvidia and AMD in AI data centers, reflecting growing investment and market trends in AI technology.
US dollar drops 5.6% in Argentina after La Libertad Avanza election win
On October 27, 2025, the US dollar fell sharply to 1430 pesos in Argentina following La Libertad Avanza's legislative victory, triggering market overreaction and liquidity concerns linked to economic policy uncertainty.
CSL shares fall 17% after lowering FY 2026 guidance on vaccine demand decline
On October 28, 2025, CSL's shares dropped 17% after downgrading revenue and profit growth guidance due to reduced US influenza vaccinations and Chinese government cost controls impacting demand.
Policy Watch
India approves seven electronics manufacturing projects under ECMS with ₹5,532 crore investment
On October 27, 2025, India approved seven projects under the Electronics Components Manufacturing Scheme, investing ₹5,532 crore and creating 5,195 jobs, supporting economic policy to boost manufacturing and employment.
Five finalists named for Federal Reserve Chair with decision expected by year-end
On October 27, 2025, Treasury Secretary Scott Bessent announced five finalists for Federal Reserve Chair, including current and former Fed officials and a BlackRock executive, signaling key economic policy leadership decisions.
UK central bank chief warns of shadow banking risks after First Brands failure
On October 27, 2025, Bank of England Governor Andrew Bailey expressed concern over financial system risks following First Brands' collapse, highlighting potential shadow banking sector vulnerabilities affecting economic stability.
RBA Governor Bullock not concerned by 4.5% unemployment, signals steady rates
On October 27, 2025, RBA Governor Michele Bullock indicated no immediate concern over 4.5% unemployment and suggested holding interest rates steady amid housing and inflation trends.