Global markets delivered steady gains in October, supported by resilient macroeconomic data, easing bond yields, and stronger corporate earnings. Investor sentiment improved toward month-end following progress in trade talks between the US and China, as both sides agreed to pause planned tariff escalations and ease China’s export controls on rare minerals, a key input for AI technology, helping to alleviate supply chain concerns. In equities, US benchmarks improved, with the S&P 500 and Nasdaq up by 2.3% and 4.7%, respectively. European markets also posted positive returns, with the Euro STOXX 50 and FTSE 100 rising by 2.5% and 4.1%, respectively. In fixed income, the Federal Reserve Bank (Fed) cut rates by 25 basis points early in the month, reinforcing risk appetite. The US 10-year bond yield fell by 7 basis points reflecting confidence in the Fed’s stance. UK Gilts rallied more sharply, with yields falling by 29 basis points supported by softer-than-expected inflation prints in recent months, raising expectations that the Bank of England may accelerate rate cuts next year. In commodities, gold rose by 3.5% as momentum continued with all-time highs, and copper gained 5.1% on industrial optimism, while Brent crude oil slipped 1% amid stable supply. Sterling weakened broadly, falling by 2.2% and 0.5% against the US dollar and euro, respectively.

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