Post by : Badri Ariffin

Global financial markets remained largely steady on Friday, with European stocks showing little movement, the dollar maintaining its level, and oil prices easing after recent gains. Investors are closely watching U.S. inflation data, delayed due to the government shutdown, and speculating on the Federal Reserve’s next moves.

Wall Street closed higher on Thursday, supported by confirmation that U.S. President Donald Trump will meet Chinese President Xi Jinping next week. This meeting, set ahead of a November 1 deadline for new tariffs on Chinese imports, eased some concerns about escalating trade tensions.

China’s Shanghai Composite Index rose 0.4%, reaching its highest level since August 2015, while European markets opened higher but later became mixed as traders assessed the global economic outlook. By 0850 GMT, the pan-European STOXX 600 had dipped less than 0.1%, still on track for a weekly gain. London’s FTSE 100 remained largely unchanged.

The MSCI World Equity Index gained 0.1%, on track for a 1.2% rise over the week. U.S. markets have surged in 2025, driven by heavy investment in artificial intelligence and expectations that the Federal Reserve will continue reducing interest rates.

Investors are particularly focused on the U.S. Consumer Price Index (CPI), expected later in the day. Analysts predict core inflation held at 3.1% in September, a key indicator that will influence future rate decisions. The Fed is widely expected to cut rates by 25 basis points at its upcoming meeting.

The dollar index edged up 0.1% to 99.045. Meanwhile, the Canadian dollar saw minimal impact after President Trump announced he was ending trade negotiations with Canada, citing a disputed advertisement featuring former President Ronald Reagan.

In currency markets, the yen weakened following pledges of economic stimulus from Japan’s new prime minister, with the dollar-yen pair at 152.97. The euro held steady at $1.1611 as Eurozone business activity unexpectedly accelerated in October, pushing German Bund yields to 2.612%.

Oil prices eased slightly after a recent surge driven by U.S. sanctions on major Russian energy firms but remain on track for weekly gains. Gold fell around 1.5% to $4,064.26 per ounce, ending a nine-week winning streak despite record inflows into gold funds earlier in the week.

Looking ahead, investors are preparing for earnings reports from major U.S. tech companies, including Apple, Microsoft, and Intel. These results are expected to influence market sentiment, particularly in sectors driving the artificial intelligence boom.

Global markets appear calm but watchful, balancing optimism around AI and easing rates with cautious attention to upcoming inflation data and geopolitical developments.

#Global