UNITED STATES

• The US Fed lowered their target range by 25bps to 3.75% - 4.0%. Chair, Jerome Powell, cautioned that another cut this year was not a foregone conclusion.
• The US and China reached a one-year truce, with the US cutting the fentanyl tariff and extending the existing truce on reciprocal tariffs. China will resume soybean sales and rare-earths flows.
• Good vibes are back on Wall Street. Earnings and deals helped send stocks to record highs after a volatile month. According to Bloomberg, so far 303 of the S&P 500 companies have reported results, with 83% delivering better-than-expected earnings and 68% better-than-expected revenue growth. The S&P 500 Index reached a new record high, up 2.3%. The “Magnificent 7” shares now make up 38% of the S&P 500 Index.

UK/Europe

• The European Central Bank kept interest rates unchanged at 2% and offered no hints about future moves as it enjoys a rare period of low inflation and steady growth.
• The EU unemployment rate was 6.0% in September 2025 and CPI marginally increased from 2% to 2.2% in September (y/y).

ASIA

• China’s GDP grew by 4.8% in Q3 y/y, as strong export performance outweighed weakening domestic consumption and investment. The annual growth target is 5%.
• Deflationary pressures persist in China on weak demand and overcapacity. CPI dipped 0.3% last month from a year earlier.
• Japan’s stock market is at a record high, as the Nikkei 225 Index gained 16.6%. The markets welcomed enhanced visibility for US-Japan trade negotiations, and the election of Sanae Takaichi as Japan’s prime minister, whose pro-stimulus plans is expected to boost equity sentiment. The central bank left its policy rate unchanged at 0.5%.

SOUTH AFRICA

• South Africa was officially been removed from the Financial Action Task Force (FATF) grey list.
• Inflation rose to 3.4% in September, edging further from the Reserve Bank’s 3% target and dimming chances of a rate cut next month.
• It was another positive month on the JSE. The FTSE/JSE All Share Index was up 1.6%, led by financials (up 8.5%), amid undemanding valuations and high-dividend yields. Gold shares took a breather.