Weekly Market Update (Nov 02, 2025)
- Market Hedwig
- Nov 1
- 2 min read
HIGHLIGHTS
Fed cut rate by 25bps as expected. US and China reached trade truce. Economic data in US is still missing due to government shutdown.
Fed: After the rate cut this week, Fed officials had a more hawkish tone on the path of monetary policy. While the progress of the rate cut cycle is debatable, it is likely dependent on the job market. Markets continue to expect another cut in December.
BoE: Market was expecting another cut in November from Bank of England (BoE), supported by the firmer inflation data and the hawkish tone. However, the inflation data surprised to the downside. More market participants revised down to 25bps cut or a pause.
Trump-Xi: The meeting between US and China president has reached certain amount of agreements on some issues but does not have a broad deal. There is no loosening of high-end chips. Chinese equities sold off after the meeting.
MARKETS
*Data as of market close. 5-day change ending on Friday.
VIEW FROM THE STREET
Equity
Goldman Sachs: The frequency of earnings beats is high, with 64% of S&P500 companies beating consensus by more than one standard deviation. However, the reward for investors is smaller than usual as investors view the forward earnings outlook as not informative.
UBS: Although no formal deal was signed, the slightly positive outcome of US-China risk catalyst would be sufficient for the equities investors amid the backdrop of stock rallies.
Fixed Income
Standard Chartered: Fed rate cut against still elevating inflation will push real rates even lower. It will potentially extend the decline in USD and support gold prices further.
HSBC: Treasury prices dropped amid the supply increase in corporate credit. We expect 25bps cut in December but no additional cut in the coming year.
Economy
J.P. Morgan: Consumers are cautious while not cracking. AI, deregulation and fed cuts are supporting businesses to invest. It boosts the capital markets activities and loan balances.
Standard Chartered: There is risk of reflation trade in US. There could be a hawkish turn driven by the acceleration in growth or inflation, which is unfavorable to gold prices.
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DISCLOSURE
This newsletter is meant for informational purposes only and is not investment advice. Always consult a licensed investment professional before making important investment decisions. Advertising and sponsorship do not influence editorial content or decisions. Market Hedwig is not responsible for the promises made or the quality or reliability of the products or services offered in any advertisement.
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