​ ​US

Markets showed some resilience, US equities mounted a rebound late in the week, with the 3 major indices gaining 4.74-5.22% over the week. The earnings season has started, with notable companies reporting mixed figures. Netflix posted a positive surprise on revenue, profits, and subscriptions, sending the stock higher; whereas Tesla beat EPS estimates but missed on revenue. At the time of writing, 75% of the 88 reporting S&P 500 constituents have reported earnings beats, although the ex-energy earnings growth is -3.4%. IMF released revised forecasts for the global economy, expecting further slowdown in the coming year, cutting expectations by 0.2% to 2.7%. The US Fed also released the Beige Book over the week, the report suggests that prices remain elevated, but sees demand softening.

On the monetary front, Fed members continued to convey the hawkish message. Philadelphia Fed President Patrick Harker suggests that inflation remains out of control, and more hikes will be needed. St. Louis Fed President James Bullard suggests that the terminal rates should still be around 4.5-4.75%, and rate hikes should continue to be front loaded. As for fundamentals, industrial production saw a 0.4% MoM growth in September, which surpassed expectations of a 0.1% increase, and it was also better than August’s 0.1% contraction. Housing data on the other hand was mixed, building permits was 1.564M in September, which was higher than market forecasts and the previous month figure, while housing starts fell to 1.439M in September, which was a notch lower than market expectations and the August figure. Next week, more Big Tech are going to report earnings, including Alphabet, Microsoft, Meta, Amazon, and Apple. The US will also be releasing manufacturing and services PMIs for October, Q3 GDP, as well as PCE data.

 ​Europe

Europe equities went higher over slightly improving investment sentiment, the UK, French, and German indices were 1.62-2.36% higher over the week. The messy political situation in the UK continued, and the UK Prime Minister Liz Truss have resigned on Thursday, making her the shortest-serving PM ever in UK history, markets will be paying attention to the upcoming developments in the UK politics scene. As for the economic side, the German ZEW Sentiment Index for October was better than expected at -59.2, although it is still very close to the historic low in September. UK CPI in September returned to the historic high of 10.1% YoY, and retail sales for September fell 1.4% MoM, which was worse than market expectations of a 0.5% drop. Next week, the Eurozone will be releasing the latest PMIs for October, the ECB will hold their interest rate meeting, and Germany will release the IFO business climate index and CPI data for October, as well as the Q3 GDP.

​China

China has announced a delay in the release of the latest economic data, sentiment was hit and both Hong Kong and China A-shares fell. The CSI 300 was down 2.69% over the week, while the Hang Seng Index in particular hit a new low since 2008 Financial Crisis on Thursday intraday, and the index is down 2.42% for the week. The 20th National Congress continued over the week, and the absence of further economic stimulus, as well as the mentions of stability and pandemic have dampened expectations of a policy pivot in the short term. Agile Group has redeemed a 1.5 billion Yuan onshore bond issuance, but the balance sheet health of the property sector remains under close monitoring. The Loan Prime Rate is kept unchanged, markets will still be on lookout for a more supportive policies for the sector. Other than the delayed economic data, China is also expected to release its industrial profits data for September next week.