Please see below article received from Brooks Macdonald this morning, which provides a global market update for your perusal.
What has happened?
US equities closed mostly higher on Wednesday. The S&P 500 gained +0.40% and Nasdaq gained +0.66%. Banks and semiconductors led as the outperformers, while the big techs were mixed. Treasuries weakened slightly, contributing to some curve steepening. The dollar index dipped -0.3%, gold climbed +0.9% to surpass $4,200 per ounce, and WTI crude oil declined -0.7%. In Europe, markets were slightly positive with the STOXX 600 edging up +0.1%. The FTSE 100 and DAX both gained +0.2%.
Trump continues hawkish tone on trade
US Trade Representative Greer labelled China’s new rare earth export restrictions as a ‘global supply chain power grab’ and a breach of prior agreements. Treasury Secretary Bessent dismissed reports that Beijing is banking on Trump’s stock market focus to force concessions, emphasising that the US won’t negotiate under market pressure. He branded Chinese Vice Commerce Minister Li Chenggang as ‘unhinged,’ accused China of questionable supply chain practices, and announced plans for price floors in various industries to counter market manipulation. However, Bessent offered a glimmer of compromise: a longer pause on high US tariffs if Beijing delays its rare earth limits, potentially negotiable in the coming weeks. Trump has questioned the need for a meeting with Xi at the upcoming Asia-Pacific Economic Cooperation summit in South Korea, but Bessent indicated it’s still likely on.
Fed’s Beige Book reveals stagnant economy
The Federal Reserve’s latest Beige Book reported minimal change in economic activity since the prior period, with three Districts showing slight to modest growth, five unchanged, and four experiencing a slight slowdown. Employment remained stable, but labour demand was subdued, with more firms reporting layoffs. Prices continued to rise, accelerated by higher input costs, which are often linked to tariffs. Wages increased modestly. Consumer spending dipped slightly, especially on retail goods, though electric vehicle sales boosted auto demand. Lower- and middle-income households hunted for discounts, while high-income luxury spending stayed robust. District outlooks varied, blending improved sentiment with persistent uncertainty.
What does Brooks Macdonald think?
US-China trade frictions show no signs of easing. But there were some positive trade developments elsewhere, US-South Korea talks signal headway on a $350 billion investment pledge, while US-India relations warm with Trump’s praise for PM Modi and claims of Delhi halting Russian crude purchase. Closer to home, UK monthly activity expanded marginally in August as expected, though July’s figure was revised to a 0.1% contraction. In France, political drama unfolds with PM Lecornu facing two no-confidence votes—one from the far-right (likely to fail) and one from the left-wing bloc, whose outcome hinges on a few votes despite offered compromises to Socialists.
Please check in again with us soon for further relevant content and market news.
Chloe
16/10/2025