Global Markets Steady as U.S. Inflation Data Approaches

On Friday, global financial markets exhibited a notable steadiness, with European stocks showing minimal fluctuations. The dollar maintained its strength while oil prices experienced a slight decline after recent hikes. Investors are keenly anticipating U.S. inflation data, which has been postponed due to the government shutdown, while speculating on the Federal Reserve's forthcoming actions.

Wall Street saw gains on Thursday, buoyed by the announcement of an upcoming meeting between U.S. President Donald Trump and Chinese President Xi Jinping. This meeting, set against the November 1 tariff deadline on Chinese goods, alleviated concerns over increasing trade friction.

China's Shanghai Composite Index advanced by 0.4%, marking its highest point since August 2015. European markets initially opened positively but later displayed mixed results as investors evaluated the global economic landscape. By 0850 GMT, the pan-European STOXX 600 had inched down less than 0.1%, still poised for a weekly increase. The FTSE 100 in London remained nearly unchanged.

The MSCI World Equity Index rose by 0.1%, anticipating a 1.2% weekly gain. The U.S. market has thrived in 2025, propelled by substantial investments in artificial intelligence and expectations regarding the Federal Reserve's interest rate cuts.

Attention is particularly on the U.S. Consumer Price Index (CPI) due later today. Analysts foresee core inflation remaining steady at 3.1% for September, a critical measure that could sway future rate decisions. A 25 basis point rate reduction by the Fed is largely anticipated in the next meeting.

The dollar index ticked up by 0.1% to 99.045. Meanwhile, the Canadian dollar faced minimal changes following Trump's termination of trade negotiations with Canada related to a controversial advertisement featuring Ronald Reagan.

In the currency arena, the yen weakened in response to Japan's new prime minister's commitment to economic stimulus, with the dollar-yen pairing at 152.97. The euro steadied at $1.1611 as unexpected acceleration in Eurozone business activity in October pushed German Bund yields to 2.612%.

Oil prices slightly retreated after a recent spike caused by U.S. sanctions on significant Russian energy firms, yet they remain on course for a weekly uptick. Gold decreased by approximately 1.5% to $4,064.26 per ounce, ending a streak of nine weeks of gains despite significant inflows into gold funds earlier this week.

Looking ahead, investors are gearing up for earnings reports from major U.S. tech entities, including Apple, Microsoft, and Intel. These results are expected to significantly influence market sentiment, particularly within sectors propelling the AI revolution.

While global markets appear calm, they remain vigilant, balancing optimism around artificial intelligence and rate adjustments with caution regarding impending inflation data and geopolitical issues.