Market Update

The past week brought a blend of contrasting signals in the realm of international trade.
Initially, global stock markets commenced on a positive note due to the prevailing optimism that the initial phase of the US/China trade deal was imminent. This optimism was fueled by China's indication of tightening intellectual property rules, a demand long emphasized by the US.
However, the market's enthusiasm waned as the week progressed. Despite Donald Trump's affirmation that the US and China were on the cusp of a crucial agreement, global equities took a hit when China issued a threat of retaliation. This was in response to Trump signing a bill supporting Hong Kong's autonomy into law, altering Hong Kong's special trade status, which will now be reviewed annually.
Amidst these trade uncertainties, there were signs indicating stability in the US economy. Data from the US revealed the resilience of the world's largest economy, leading to the belief that US interest rates would remain unchanged for the time being. Third-quarter GDP figures were revised upward from 1.9% to 2.1%, and durable goods orders showed notable strength, with a 0.6% increase in October after a 1.4% decline in September—surpassing consensus expectations.
Additionally, the Fed's Beige Book highlighted improvements in economic growth, describing US growth as "modest," a shift from the previous characterization of "slight to modest."
Looking ahead, Germany's Social Democrats were set to announce the results of its leadership election, a development that could significantly impact the country's political landscape. US employment data, including non-farm payrolls, unemployment rate, participation rate, and average earnings, slated for release on Friday, would likely shape market sentiment in the coming week.
Moreover, a flurry of Purchasing Managers' Index (PMI) data from various countries and significant economic indicators such as unemployment, Consumer Price Index (CPI), retail sales, and the final Q3 GDP reading from the Eurozone, were also anticipated, adding to the complex tapestry of global economic activity.