Stocks Extend Winning Streak, Oil Gains on OPEC+: Markets Wrap
(Bloomberg) — Stocks began November with gains, suggesting the seven-month rally in global equities may still have room to run amid strong tech earnings and easing US–China trade tensions.
MSCI’s all-country world index advanced for the seventh time in eight sessions, with Asian shares climbing 0.6%. Contracts for the S&P 500 gained after the gauge rose Friday, as earnings optimism outweighed worries about a rally that’s heavily concentrated on tech giants. European shares were also set for a positive open. Markets in Japan and cash trading of Treasuries were closed on Monday due to a holiday.
Commodity markets were in focus, with gold fluctuating after early declines following China’s scrapping of a long-standing tax incentive. West Texas Intermediate crude rose 0.6% after OPEC+ decided to pause output increases. Iron ore dropped on concerns about China’s economic outlook.
Stocks have rallied to record levels, even after Federal Reserve Chair Jerome Powell warned that a December rate cut isn’t a foregone conclusion and megacap tech earnings were mixed. Trade tensions have also eased, with Beijing signaling plans to suspend new export controls on rare earth metals and end investigations into US firms in the semiconductor supply chain.
“Powell’s FOMC press conference last week threw a curveball to the markets, but the broader context of a one-year ceasefire in the US-China trade relations and global AI boom should keep investors in a positive mood at the start of November,” said Homin Lee, a senior macro strategist at Lombard Odier Singapore. “The market’s focus will be on private sector data releases in the US as well.”
From geopolitics to trade risks, a US government shutdown and high valuations, traders had a lot to consider in October. Ultimately, what prevailed was confidence in US companies and bets that rate cuts will keep momentum going for profits. The artificial intelligence theme also remained a key driver as several megacap tech firms reported earnings.
Since its April slump, the S&P 500 has roared back nearly 40%, marking its longest monthly winning streak since 2021. The Nasdaq 100’s performance has been even more striking: a seven-month rally, its best run in eight years, powered by tech’s strong balance sheets and unrelenting AI optimism.
The S&P 500 “will only pause running if something surprises meaningfully to the downside,” said Anna Wu, a cross-asset strategist at Van Eck. “In last week’s case, we had Xi-Trump talks disappoint moderately, but soon after, earnings took over again with Apple and Amazon reporting strongly. That strength is extending to this week, supporting overall risk sentiment.”
In other corners of the market, Treasury futures inched higher while Australian yields rose ahead of an interest rate decision by the country’s central bank on Tuesday. An index of the dollar steadied as investors awaited speeches from Fed officials for more clues on the central bank’s policy path.
What Bloomberg strategists say…
After three months of relative calm, FX markets will reclaim some attention this week, amid a quieter earnings schedule. The Bloomberg Dollar Spot Index will very likely reach a six-month high this week, with major FX ranges breaking across the board. The yen will remain under pressure.
— Mark Cudmore, MLIV Executive Editor. For full analysis, click here.
Attention was also on commodities as China announced the scrapping of a long-standing gold tax incentive in a potential setback for consumers in one of the world’s top bullion markets. The precious metal surged to a record high in early October, aided by a buying frenzy among retail investors, before dropping sharply in the final two weeks of the month.
“The tax changes in gold’s heaviest consumer nation will dent global sentiment,” said Adrian Ash, director of research at BullionVault. “This news could prove very welcome to traders and investors hoping for a deeper correction after last month’s spike.”
Meanwhile, oil rose. OPEC+ said it will pause output increases after making another modest hike next month.
The move came as the market faces the prospect of a ballooning oversupply that has seen Brent lose 10% over the past three months. Prices have pulled back from a five-month low after increased US sanctions on Russia created question marks about the supply prospects from the major exporter.
Traders will also be watching a packed week for global central banks. Policymakers from Australia to Sweden and Brazil are expected to keep rates steady, while their counterparts in Mexico may deliver a cut. The Bank of England is expected to skip an interest rate cut on Thursday.
In the US, the ongoing federal shutdown continued to cloud the outlook by disrupting key economic data releases.
Corporate News:
Berkshire Hathaway Inc.’s cash pile soared to $381.7 billion in the third quarter, a fresh record, and operating earnings surged 34% at Chief Executive Officer Warren Buffett’s conglomerate. Ryanair Holdings Plc expects to exceed its passenger growth target for the full year as the airline receives aircraft early from Boeing Co. and demand for travel remains strong. Distressed Hong Kong builder New World Development Co. has launched an exchange offer for its outstanding perpetual notes, issuing up to $1.9 billion worth of new securities, according to an exchange filing. Two Singapore property asset managers are mulling a merger that could create one of Asia’s largest real estate firms with more than $150 billion under management, Dow Jones reported on Monday. The US auto safety regulator investigating whether certain Tesla Inc. door handles are defective received more complaints within days of initiating its probe from consumers who were unable to get into or out of their vehicles after battery failures. Some of the main moves in markets:
Stocks
S&P 500 futures rose 0.2% as of 3:04 p.m. Tokyo time Nikkei 225 futures (OSE) fell 0.2% S&P/ASX 200 futures rose 0.1% Hong Kong’s Hang Seng rose 1.2% The Shanghai Composite rose 0.5% Euro Stoxx 50 futures rose 0.2% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was unchanged at $1.1537 The Japanese yen was little changed at 154.11 per dollar The offshore yuan was little changed at 7.1167 per dollar Cryptocurrencies
Bitcoin fell 2.2% to $107,608.33 Ether fell 3.2% to $3,735.79 Bonds
Japan’s 10-year yield advanced one basis point to 1.655% Australia’s 10-year yield advanced four basis points to 4.34% Commodities
West Texas Intermediate crude rose 0.6% to $61.37 a barrel Spot gold rose 0.3% to $4,013.69 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Yihui Xie.
©2025 Bloomberg L.P.
