Morning wrap (29.10.2025)

Futures on Wall Street indexes continue to rise ahead of key Big Tech earnings (Microsoft, Alphabet, Meta) and the Federal Reserve’s decision, which is widely expected to include a 25 bp rate cut in the U.S. The US100 is up for the sixth straight session (+0.35%), while US500 (+0.2%) and US2000 (+0.1%) are also in the green; US30 is slightly below the line, similar to EU50 in Europe (-0.02% to -0.08%).

According to U.S. Treasury Secretary S. Bessent, “leaving room for the Bank of Japan will be key to anchoring inflation expectations [in Japan].” Bessent’s comment referred to Prime Minister Takaichi’s calls for closer cooperation between the BOJ and the government to achieve the new administration’s policy goals.

Sentiment across the Asia-Pacific region remains mixed. AU200.cash is down nearly 1% following higher-than-expected CPI data, while in Japan (JP225: +1.3%) and South Korea (KOSPI: +1.7%), AI-driven optimism in tech stocks prevails, supported by record revenues from Nvidia supplier SK Hynix ($7.9 billion of operating profit), which produces DRAM memory chips.

Consumer inflation in Australia rose above expectations in Q3, reflecting ongoing pressure from monthly readings and reinforcing the RBA’s hawkish stance. CPI increased 1.3% q/q (forecast: 1.1%, previous: 0.7%) and 3.2% y/y (forecast: 3%, previous: 2.1%; the highest since July 2024). The main drivers were housing (+2.5%), recreation and culture (+1.9%), and transport (+1.2%). Electricity prices jumped 9.0% due to annual tariff reviews and delayed rebates.

The Australian dollar is gaining against all G10 currencies on the hawkish CPI surprise (AUDUSD: +0.4%, EURAUD: -0.6%, AUDNZD: +0.2%). The British pound is the weakest currency (GBPUSD: -0.2%, EURGBP: +0.1%), falling for a second session after the British Retail Consortium reported a 0.3% decline in shop prices in September. EURUSD is down 0.2% to 1.163.

Gold halted its four-day decline, rebounding 1.1% to USD 3,980 per ounce; silver gained 2% to USD 47.84, while platinum (+1%) and palladium (+1.6%) futures also rose.

Brent and WTI crude recovered after two days of losses (up 0.2% and 0.3%, respectively), as did natural gas, which added 0.6% after three red sessions.

Cryptocurrency sentiment is mixed: Bitcoin trades flat, Ethereum adds 0.7% to USD 4,030, while Solana (+0.2%) and Ripple (+0.7%) are also higher; Chainlink slips 0.1%.