This week global equity markets rallied amidst key monetary policy shifts across major economies. The Federal Reserve and Bank of Canada each cut interest rates by 25 basis points, citing economic softening and inflation concerns. Fed Chair Jerome Powell described the move as a “risk management” measure. Meanwhile, the Bank of Japan and Bank of England held rates steady, reflecting cautious stances amid persistent inflation and political uncertainty. In the U.S., President Trump renewed his push to end quarterly corporate earnings reporting, advocating for a shift to semiannual disclosures to promote long-term business planning.

In global geopolitics, U.S. Secretary of State Marco Rubio met Israeli Prime Minister Benjamin Netanyahu in Jerusalem to address the recent Israeli airstrike in Qatar. President Trump visited the United Kingdom, engaging with King Charles III and Prime Minister Keir Starmer, and signed a bilateral tech investment agreement. In Madrid, Treasury Secretary Scott Bessent led trade negotiations with China, signaling progress ahead of the November tariff deadline. In Canada, Prime Minister Mark Carney announced a $9.4 billion affordable housing initiative aimed at easing the national housing crisis.

Global Updates
  • The MSCI All Country World Index rose, buoyed by Wall Street gains and investor optimism following expected 25 bps rate cuts by the U.S. Federal Reserve and Bank of Canada. On the other hand, The Bank of England and Bank of Japan held rates steady amid economic and political uncertainty. The Nikkei 225 pared gains due to the BoJ’s cautious stance, while the FTSE 100 benefited from the BoE’s measured approach.
  • U.K. inflation held steady at 3.8% in August, despite food inflation rising to 5.1%.
  • Jose Manuel Campa, head of the European Banking Authority, announced his resignation effective January 31, 2026.
  • The board of Banco Sabadell urged shareholders to reject BBVA’s $17.97 billion acquisition bid, citing a 40% undervaluation.
  • Ivanhoe Mines received a $500 million strategic investment from the Qatar Investment Authority, which received a 4% stake in return.
  • Purpose Investments Inc. plans to contest greenwashing charges filed by the Ontario Securities Commission.
  • Orsted’s stock declined after announcing plans to raise 60 billion Danish kroner via discounted share issuance.
  • Novo Nordisk shares rallied following EMA approval of its diabetes drug Rybelsus for cardiovascular treatment.
  • Thyssenkrupp stock rose after receiving a non-binding acquisition proposal from Jindal Steel for its steel unit.
  • Baidu stock rallied after completing a $618 million offshore bond issuance and announcing an AI collaboration with China Merchants Group.
  • China instructed domestic tech firms to halt purchases of Nvidia AI chips, promoting locally made alternatives.
  • The Kospi index hit a record high after South Korea withdrew a proposal to lower the capital gains tax threshold.
  • Japan’s exports fell 0.1% year on year in August, less than expected, amid U.S. tariffs and front-loaded shipments earlier in the year. Singapore’s exports also dropped by 11.3% in August, driven by weak demand for petrochemicals, machinery, and food products. .
  • Recent data indicates a slowdown in China’s economy, with weaker fixed asset investment, retail sales, and industrial output. Q3 GDP growth is now expected to fall below 5%, largely due to the real estate sector contraction and retail weakness.
  • In the oil market this week, China’s crude stockpiles exceeded 1 million bpd in August due to increased imports and domestic production. Ukrainian drone strikes on Russian oil refineries and President Trump’s comments on Russian crude buyers contributed to rising global oil prices. U.S. crude inventories fell sharply last week as net imports dropped to a record low, according to the EIA.
  • Gold prices hovered near record highs, supported by expectations of further U.S. rate cuts and safe-haven demand.
U.S. Equity
  • The S&P 500, Nasdaq, Dow Jones, and Russell 2000 all hit record highs, driven by the Fed’s 25 bps rate cut and signals of further easing this year. Gains in technology stocks also supported the rally, though investor sentiment was tempered by the Fed’s projection of elevated inflation through 2028.
  • Weekly jobless claims fell by 33,000 to 231,000 for the week ending September 13, indicating continued labor market resilience.
  • The U.S. initiated consultations with Mexico and Canada on the USMCA trade pact, which is set to expire next year.
  • The SEC approved new listing standards and streamlined the approval process for crypto ETFs, paving the way for faster product launches.
  • Veteran investor Ray Dalio advised allocating 10–15% of portfolios to gold and other safe-haven assets amid global policy and economic uncertainty.
  • Microsoft is set to receive an equity stake exceeding $100 billion in OpenAI as it transitions to a for-profit public company. Microsoft will also unbundle Teams from its Office suite in the EU to address antitrust concerns.
  • Intel stock rallied after lowering its fiscal year 2025 operating cost forecast to $16.8 billion, supported by the $3.3 billion sale of a 51% stake in its Altera chip unit and a $5 billion investment from Nvidia for joint chip development.
  • Alphabet’s market cap surpassed $3 trillion, with shares rising to $252.
  • Nvidia faced antitrust allegations from China over its acquisition of Israeli networking technology, amid broader efforts to bolster China’s domestic AI sector and gain leverage in trade talks.
  • Tesla shares rose following a $1 billion stock purchase by CEO Elon Musk and renewed investor optimism around its autonomous driving and robotics initiatives.
  • Novo Nordisk’s U.S. stock gained after positive Phase 3 trial results for its new weight-loss drug Cagrilintide.
  • The Trump administration neared finalization of a TikTok deal with ByteDance, expected to include new investors and continued cloud services from Oracle.
  • FedEx stock rallied on projected $1 billion in cost savings and a full-year EPS outlook of $17.20–$19.00.
Fixed Income
  • The Bloomberg U.S. Aggregate Bond Index edged higher this week.
  • The U.S. 10-year Treasury yield rose to 4.122% and the yield on the 2-year note rose slightly to 569% over the week after labor market data soothed investors’ fears of a slowdown in the labor market.
  • The U.S. Dollar Index recovered this week to depreciate slightly to 97.38. The Fed’s rate cut and labor market data partially raised the dollar from a mid-week slump.

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