Image Source: Pexels
 

US indices finished Friday’s trading session higher, with investors reacting positively to statements from President Donald Trump that eased concerns about a further escalation of the US-China trade conflict. The Dow Jones Index (US30) rose by 0.52% (weekly gain of +1.08%). The S&P 500 Index (US500) gained 0.53% (weekly gain of +0.63%). The technology-heavy Nasdaq Index (US100) closed up 0.65% (weekly gain of +0.78%). Trump stated that his proposed 100% tariffs on Chinese goods would be a temporary measure, while simultaneously accusing Beijing of increasing trade tensions. He also confirmed that a meeting with Chinese President Xi Jinping is “most likely to happen at the end of the month,” which market participants viewed as a potential step toward de-escalation. Additional support was provided by the recovery in regional bank stocks after a sharp drop the day before.

On Friday, Bitcoin fell to around $106,000, reaching its lowest level since early July, amid a new wave of risk aversion across global markets. Investor sentiment worsened following new signs of credit stress among US regional banks, which reignited fears of a possible banking crisis similar to the events of 2023 when the Federal Reserve intervened to stabilize the financial system. The market is also under pressure from escalating US-China trade tensions, a protracted US government shutdown, and rising budget concerns, all of which reduce risk appetite among traders.

European stock markets mostly declined on Friday. Germany’s DAX (DE40) fell by 1.82% (weekly loss of -2.22%), France’s CAC 40 (FR40) closed down 0.18% (weekly gain of +2.70%), Spain’s IBEX35 Index (ES35) dropped by 0.29% (weekly gain of +0.43%), and the UK’s FTSE 100 (UK100) closed negative 0.86% (weekly loss of -0.77%). In September 2025, the annual inflation rate in the Eurozone was 2.2%, slightly above the 2.0% recorded in the previous three months and just above the European Central Bank’s (ECB) target. Services inflation continued to rise, climbing from 3.1% in August to 3.2%. The rise in the core measure indicates persistent domestic inflationary pressure, which will compel the ECB to maintain rates for the next few months. On Friday, S&P Global Ratings unexpectedly downgraded France’s credit rating by one notch, from AA- to A+, and assigned a negative outlook, citing increased political uncertainty.

WTI crude oil prices rose by 0.1% on Friday. Despite the small daily gain, this marked the third consecutive week of decline, resulting in a nearly 3% weekly drop amid oversupply concerns and geopolitical uncertainty. Fears of rising supply intensified after the International Energy Agency (IEA) expected an increase in the global oil surplus by 2026, and US data showed a sharp rise in inventories over the past week. US production hit a record 13.636 million barrels per day, and demand for storage in key logistics hubs increased significantly. This indicates that market participants expect the supply surplus to persist and potentially pressure prices in the near term.

Silver (XAG/USD) retreated from record highs amid improved investor sentiment. On Friday, silver prices fell by more than 4%. The pressure on quotes came from improved risk appetite after President Donald Trump attempted to mitigate concerns about the US-China trade confrontation. Despite the correction, silver ended the week up by more than 3%, marking its ninth consecutive positive week. The metal had previously been supported by concerns over the stability of the US financial system, triggered by credit fraud scandals in regional banks, which spurred demand for safe-haven assets. Meanwhile, a liquidity crisis in the London silver market caused a deficit in physical supplies, amplifying global demand and forcing some investment funds to temporarily halt the inflow of funds into their silver ETFs.

The US natural gas prices (XNG/USD) rose by nearly 3%, surpassing the $3 per million British thermal units (MMBtu) level. However, despite the daily recovery, the price declined for the second consecutive week. Pressure on quotes remains due to expectations of mild weather and high gas inventories, which offset the effect of reduced production and near-record LNG export levels. Higher production in previous months allowed companies to build up reserves, which now exceed the five-year average by approximately 4%.

Asian markets traded mixed last week. Japan’s Nikkei 225 (JP225) fell by 1.91%, China’s FTSE China A50 (CHA50) rose by 0.19%, Hong Kong’s Hang Seng (HK50) dropped by 1.51%, and Australia’s ASX 200 (AU200) recorded a positive result of 0.85%.

A key vote to elect a new Prime Minister is scheduled in the Japanese parliament on Tuesday. Takaichi, the leader of the Liberal Democratic Party (LDP), is negotiating with the right-wing Japan Innovation Party (Ishin) after breaking a more than two-decade partnership with the Komeito party in early October. On Friday, LDP leadership stated that negotiations for a potential coalition are progressing with substantial headway, increasing the chances of forming a stable government. Takaichi previously opposed raising interest rates by the Bank of Japan, and he is expected to maintain this stance as the new Prime Minister, which could influence the country’s monetary policy and negatively impact the dynamics of the yen.

• S&P 500 (US500) 6,664.01 +34.94 (+0.53%)
• Dow Jones (US30) 46,190.61 +238.37 (+0.52%)
• DAX (DE40) 23,830.99 −441.20 (−1.82%)
• FTSE 100 (UK100) 9,354.57 −81.52 (−0.86%)
• USD Index 98.54 +0.21 (+0.21%)
   

News feed for: 2025.10.20

• New Zealand Consumer Price Index (q/q) at 00:45 (GMT+3);
• China PBoC Loan Prime Rate (m/m) at 04:00 (GMT+3);
• China GDP (q/q) at 05:00 (GMT+3);
• China Industrial Production (y/y) at 05:00 (GMT+3);
• China Retail Sales (y/y) at 05:00 (GMT+3);
• China Unemployment Rate (m/m) at 05:00 (GMT+3);
• Canada BOC Business Outlook Survey at 17:30 (GMT+3);
• China Communist Party Fourth Plenum (All Day).

More By This Author:

Silver Prices Hit New Records
Australia’s Labor Market Is Cooling
Platinum Narrows Its Price Gap With Gold