Photo by Timothy Newman on Unsplash
 

The US stock indices declined on Thursday. The Dow Jones Index (US30) fell by 0.23%. The S&P 500 Index (US500) dropped by 0.99%. The Technology Index Nasdaq (US100) closed lower by 1.57%. Weakness was concentrated in technology and communication services. Meta stock plunged by 11.3% after announcing a one-time tax expense of nearly $15.9 billion and a significant increase in capital expenditure on AI, which worsened the short-term cash flow outlook. Investors also reduced their positions in Microsoft (-2.6%) amid disclosed losses of about $3.1 billion from investments in OpenAI and a confirmed increase in AI expenses.

The Canadian dollar fell to the 1.40 CAD per USD mark, as the strengthening of the dollar driven by expectations of a longer period of high Federal Reserve rates outweighed the moderately hawkish signals from the Bank of Canada. The macroeconomic picture in Canada remains weak: Q2 GDP contracted by 1.6%, the labor market is losing momentum despite a one-time job gain of 60,000, and unemployment remains around 7.1%, which is a high figure.
The Mexican peso dropped below 18.55 MXN per USD, reaching a nearly seven-week low. The currency was pressured by expectations of a softer stance from the Bank of Mexico, while the dollar strengthened following signals from the Fed that a rate cut in December is not guaranteed. Fresh macroeconomic data amplified the sell-off. Mexico’s Q3 GDP declined by 0.3% q/q. Industrial production contracted by approximately 1.5%. Unemployment rose to 3.0% in September, the highest level since August 2024.

European stock markets traded without a unified direction yesterday. Germany’s DAX (DE40) fell by 0.02%, France’s CAC 40 (FR40) closed lower by 0.53%, Spain’s IBEX35 (ES35) rose by 0.68%, and the UK’s FTSE 100 (UK100) closed positive 0.04%. The European Central Bank left key interest rates unchanged for the third consecutive time in October. The main refinancing rate remained at 2.15%, and the deposit facility rate at 2.0%. Despite a challenging global environment, the regional economy shows resilience due to a strong labor market, robust private sector balance sheets, and the effect of previous rate cuts. According to preliminary estimates, the Eurozone economy grew by 0.2% q/q in Q3 2025, accelerating from the Q2 pace (+0.1%) and slightly exceeding market expectations (+0.1%). Year-on-year, GDP added 1.3%, also surpassing expectations (+1.2%). Stronger GDP data reduces pressure on the ECB for a quick policy easing.

On Thursday, WTI oil prices fell below $60 a barrel. Demand prospects remain subdued, and major producers continue to increase output. OPEC+ intends to confirm a production increase of 137 thousand barrels per day starting in December. Additional pressure came from data on a sharp rise in seaborne inventories: the volume of oil on tankers reached a record 1.4 billion barrels, fueling expectations of a further increase in global stockpiles.

The US natural gas prices (XNG/USD) recovered to the $3.9 per MMBtu mark, approaching the three-month high of $4 recorded on October 27. The rise in quotations was supported by expectations of significant LNG shipments to Europe and Asia, which partially offset high domestic production and inventory levels. Concurrently, the US administration intensified the promotion of energy import commitments as part of trade negotiations with Asian partners.
Asian markets were mostly lower yesterday. Japan’s Nikkei 225 (JP225) rose by 0.04%, China’s FTSE China A50 (CHA50) fell by 0.52%, Hong Kong’s Hang Seng (HK50) dropped by 0.24%, and Australia’s ASX 200 (AU200) posted a negative result of 0.46%.

On Friday, the Hong Kong market fell by 200 points at the open. Investors reacted negatively to weak official China PMI figures for October: the rate of contraction in industrial business activity was the highest in the last six months, and the service sector remains in a slowdown phase. The temporary truce in the US-China trade conflict also causes additional caution, as a number of key structural issues remain unresolved. The market is also awaiting the publication of Hong Kong’s Q3 GDP data, which will be released later today.

• S&P 500 (US500) 6,822.34 −68.25 (−0.99%)
• Dow Jones (US30) 47,522.12 −109.88 (−0.23%)
• DAX (DE40) 24,118.89 −5.32 (−0.02%)
• FTSE 100 (UK100) 9,760.06 +3.92 (+0.040%)
• USD Index 99.53 +0.31% (+0.31%)
   

News feed for: 2025.10.31

• Japan Tokyo Core CPI (m/m) at 01:30 (GMT+2);
• Japan Unemployment Rate (m/m) at 01:30 (GMT+2);
• Japan Retail Sales (m/m) at 01:50 (GMT+2);
• China Manufacturing PMI (m/m) at 03:30 (GMT+2);
• China Non-Manufacturing PMI (m/m) at 03:30 (GMT+2);
• German Retail Sales (m/m) at 09:00 (GMT+2);
• Switzerland Retail Sales (m/m) at 09:30 (GMT+2);
• Eurozone Consumer Price Index (m/m) at 12:00 (GMT+3);
• Canada GDP (m/m) at 14:30 (GMT+2);
• US Chicago PMI (m/m) at 15:45 (GMT+2).

More By This Author:

Fed And Bank Of Canada Cut Rates
The Australian Dollar Strengthened, Reaching A Three-Week High
The US And China Representatives Reached A Preliminary Trade Agreement