Markets upbeat ahead of Fed, earnings season, and U.S.-China trade talks
Financial markets are starting the week with confidence, supported by signs of optimism on the U.S.-China negotiations front and awaiting both the big tech earnings reports and the Federal Reserve’s decision. Equities are expected to trade moderately higher, bonds are seen strengthening, while gold remains in a corrective phase. Volatility is decreasing.
Our intermarket dashboards continue to indicate a gradual return to a risk-on sentiment in financial markets. The S&P 500/VIX ratio has returned to late-September levels, while the S&P 500/Nasdaq ratio has reached a new one-year low. Notably, gold is showing weakness relative to the Dow, the Dollar, and Oil. Overall trends remain consistent with previous analyses.
On the macro front, the day includes data on German consumer confidence and Euro area inflation expectations. Also noteworthy are India’s industrial production figures, U.S. housing price data, and the Fed’s regional surveys on services (Dallas) and manufacturing (Richmond).
Regarding earnings, ahead of tomorrow’s big tech releases, today’s focus will be on the results from Visa and Novartis.
Our forecast analysis points to a generally positive day for equity markets, with signs of moderate optimism and slightly greater uncertainty on the European front. Bonds are also expected to confirm their upward momentum, while signals for the Dollar and Gold remain in a wait-and-see phase. Volatility is projected to decline further.
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NOTES AND WARNINGS
Data compiled by kbmeter.com. Analysis date: 28 October 2025 - 7:21 AM GMT+1
This content is provided for informational purposes only and should not be considered financial advice. All scores and assessments are based on the previous trading day’s closing prices. Futures indications refer to the date and time of the analysis.
