U.S. Defense Bill Sets Record $901 Billion Budget, Includes Ukraine Aid 
UK Job Market Shows Persistent Weakness Ahead of November Budget 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
Holiday Economic Questions: What Bank of America Says You Should Expect 
Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
Russia Stocks Close Flat as MOEX Hits 1-Month High 
Spain’s Industrial Output Records Steady Growth in October Amid Revised September Figures 
U.S. Stock Futures Hold Steady Ahead of Key Fed Decision 
ECB Signals Steady Rates Ahead as Policymakers Warn of Inflation Risks 
Trump Meets Mexico and Canada Leaders After 2026 World Cup Draw Amid USMCA Tensions 
Global Currencies Steady Ahead of Key Central Bank Decisions 
Asia’s IPO Market Set for Strong Growth as China and India Drive Investor Diversification 
Gold Prices Inch Higher as Fed Rate-Cut Expectations Strengthen 
Austria’s AA Credit Rating Affirmed as Fitch Highlights Stable Outlook 
The U.S. dollar held steady Wednesday ahead of a crucial Federal Reserve policy meeting, with investors cautious amid an uncertain economic outlook and renewed capital outflows from Asian markets. News of upcoming U.S.-China trade talks, set for Saturday in Switzerland, helped ease fears of an escalating trade war. Treasury Secretary Scott Bessent and trade chief Jamieson Greer will meet China’s top economic official, following hints from President Trump about potential trade deals this week.
Fed Chair Jerome Powell is expected to signal that more economic data is needed before making any policy moves. While the Fed is anticipated to keep rates unchanged, markets are split on whether cuts will resume by July or be delayed due to persistent inflation concerns.
Currency markets showed signs of stabilization following extreme volatility. Taiwan’s dollar, which had surged over 10% after Trump’s tariff announcement on April 2, weakened slightly by 0.65%. The Korean won touched a six-month high before retreating, while the Chinese yuan softened after China’s central bank announced its first reserve requirement ratio (RRR) cut of 2025 to support growth.
The U.S. dollar index remained flat after three consecutive daily losses, while the euro dipped 0.2% to $1.1340 after Friedrich Merz’s election as Germany’s chancellor. Meanwhile, the Japanese yen weakened 0.4% following a holiday, and the Hong Kong dollar hovered near the strong end of its trading band.
Analysts at Deutsche Bank warned that sharp currency shifts, like those in Taiwan, could ripple across markets with large unhedged dollar positions. Japan, with $2 trillion invested in U.S. assets via pension and insurance firms, remains highly exposed. A stronger yen could erode returns, pressuring Japan’s institutional investors.
