Russell Shor

The dollar climbed to a two-and-a-half-month high, fueled by stronger-than-expected U.S. economic data, indicating the Federal Reserve may cut rates by only 50 basis points this year. With a strong correlation between rising real rates and the dollar's performance, the outlook remains positive for the greenback.

Netflix's Q3 earnings exceeded expectations, with revenue rising 15% to $9.83 billion and EPS at $5.40. The company added 5.07 million subscribers, driven by its ad-supported tier and upcoming content, including "Squid Game" Season 2.

Major tech companies like Google, Amazon, and Microsoft are turning to nuclear energy to power their AI data centres. This shift addresses both rising electricity needs and carbon reduction goals.

Nvidia is experiencing rapid growth, with strong demand for its Blackwell chips and continued momentum from its older Hopper line. Analysts are optimistic about its long-term prospects, predicting market share gains and potential stock value surpassing Apple.

China faces significant economic challenges, with upcoming fiscal measures anticipated to support growth amidst a troubled property market. Despite some positive signs, experts warn that more aggressive interventions are needed to restore confidence and ensure a sustainable recovery.

U.S. equities maintained their upward trend, bolstered by robust job data and anticipated third-quarter earnings. While technology is expected to drive growth, sectors like financials and industrials may face challenges.

China’s stock market has surged following decisive government actions, including interest rate cuts and property sector support. However, deeper concerns about weak consumer confidence and deflation remain. Analysts argue that further fiscal measures are needed to sustain long-term economic recovery.

The European Union has approved tariffs of up to 45% on electric vehicles imported from China to counter alleged unfair subsidies and protect local manufacturers. This decision has raised concerns among member states, particularly Germany, about potential retaliation from China and its impact on European exports. Chinese EV makers now face challenges in adjusting to these tariffs, with some considering production shifts to Europe to mitigate the financial burden.

European automakers, including Stellantis, Aston Martin, and Volkswagen, issued profit warnings due to industry challenges and rising Chinese competition. This led to significant stock declines and concerns over prolonged sector weakness.

Micron Technology's robust earnings and revenue forecast, driven by strong AI demand, sparked a global surge in chip stocks. Major players like Samsung, SK Hynix, and European firms such as ASML saw significant gains. The rally reflects growing confidence in the semiconductor sector, particularly in AI-related products.

Gold recently hit a record high, driven by expectations of further Federal Reserve rate cuts and rising geopolitical tensions. Despite strong momentum, signs of overbought conditions and potential short-term volatility suggest caution. However, ongoing global risks and political uncertainty could continue to support further gains.