Core Points - The European Central Bank (ECB) decided to keep the key deposit rate unchanged at 2%, marking the third consecutive meeting without a rate change since the last cut in June, when the inflation rate in the Eurozone reached the target of 2% [1] - The ECB stated that inflation remains close to the medium-term target of 2%, and the assessment of the inflation outlook has largely remained unchanged [1] - Despite a challenging global environment, the economy continues to grow, supported by a strong labor market and robust private sector balance sheets [1] - The ECB warned of uncertainties in the outlook, particularly due to ongoing global trade disputes and geopolitical tensions [1] - Eurozone inflation rose slightly to 2.2% in September, primarily driven by an increase in service prices, leading economists to suggest that the ECB is likely to adopt a cautious approach regarding interest rate adjustments [1] Economic Data - Preliminary data showed that the Eurozone's economy grew by 0.2% quarter-on-quarter in the third quarter, which was above expectations and reinforced the ECB's decision to maintain interest rates [3] - The ECB reiterated its approach of making interest rate decisions based on data and meeting-by-meeting assessments [3] - ECB officials indicated that the rate-cutting cycle is nearing its end, with comments suggesting that there is no immediate need to adjust policies unless significant changes occur [3] - A survey conducted in mid-October revealed that the majority of economists expect the ECB to keep the deposit rate unchanged for the remainder of the year, with 57% of surveyed economists predicting that rates will remain stable until the end of 2026 [3]

Core Viewpoint - The European Central Bank's decision to pause further interest rate cuts is seen as a prudent move, with indications that they are nearing the terminal interest rate level [1] Group 1: Economic Analysis - MHA economic advisor Joe Nellis highlights the uncertainty brought by global trade disputes as a factor influencing the ECB's decision [1] - There is a possibility that the ECB may consider another rate cut in September, depending on economic conditions [1] Group 2: Policy Implications - The current stance of the ECB reflects a cautious approach to monetary policy amid ongoing economic uncertainties [1] - The statement from the ECB suggests a careful balancing act between stimulating the economy and managing inflation risks [1]

Group 1 - Global stock markets are nearing historical highs, with analysts predicting further increases supported by "buying the dip" activities [1][4] - The MSCI All Country World Index is just 0.5% away from surpassing its historical closing high of 887.72 points set on February 18, having rebounded 19% from its low in April [1] - Many investors are seeking potential pullback opportunities to deploy funds, as the U.S. temporarily exempted most tariffs on trade partners, boosting market risk appetite [4] Group 2 - Analysts forecast an 11% increase in the MSCI global stock benchmark index over the next 12 months, with strategists beginning to adjust allocations to major markets [4] - Morgan Stanley strategists have raised their positions on U.S. stocks and bonds, anticipating that a series of interest rate cuts by the Federal Reserve will support bonds and boost corporate earnings [4] - European stocks have emerged as significant winners, with 8 out of the 10 best-performing stock markets globally this year located in Europe [4][5] Group 3 - The Euro Stoxx 600 index has outperformed the S&P 500 index by 18 percentage points, driven by historic fiscal spending plans in Germany and a stronger euro [5] - Strong corporate earnings and attractive valuations in Europe are making the region a safer investment option amid trade and fiscal debt concerns in the U.S. [5] - Interest in European markets has surged, with inquiries about Europe increasing more in the past two months than in the last decade [5]

Core Viewpoint - The International Energy Agency (IEA) has significantly revised down its global oil demand growth forecast for 2025, citing economic instability and the increasing market share of electric vehicles as key factors [1][2]. Group 1: Oil Demand and Supply - The IEA projects global oil demand growth for 2025 to be 730,000 barrels per day, a reduction of 300,000 barrels per day from previous estimates [1]. - In Q1 2025, global oil consumption is expected to increase by 1.2 million barrels per day, marking the largest increase since 2023 [1]. - Global oil supply in March increased by 590,000 barrels per day, reaching 103.6 million barrels per day, primarily driven by non-OPEC countries [1]. Group 2: Refining and Inventory - Global crude oil processing capacity is expected to reach 83.2 million barrels per day in 2025, with an increase of 340,000 barrels per day, down by 230,000 barrels per day from earlier forecasts [2]. - Global oil inventories rose by 21.9 million barrels in February, totaling 7.647 billion barrels, although they remain at the lower end of the past five years [2]. Group 3: Price Dynamics and Market Sentiment - Oil prices have experienced a significant drop, with a decline of approximately $10 per barrel from March to early April, reaching near four-year lows [2][3]. - The decision by some OPEC+ members to lift voluntary production cuts has heightened concerns about falling oil prices [3]. - The U.S. implementation of "reciprocal tariffs" has raised fears of a global economic downturn, impacting market stability and oil prices [3].

Core Viewpoint - The copper market is experiencing volatility due to escalating global trade disputes, with recent price fluctuations reflecting a return to previous levels after a significant drop [2][11] Group 1: Trade and Economic Impact - The U.S. has been facing significant economic challenges, including a large debt scale and trade deficits, leading to increased tariffs as a means to address domestic issues [2] - Recent tariff measures have heightened concerns about potential disruptions in global trade chains, which could negatively impact economic growth and increase inflation [3] - The U.S. administration's shift towards a more conciliatory trade stance has improved market sentiment, resulting in a rebound in risk assets that were previously affected [2][3] Group 2: Supply and Demand Dynamics - Despite a slight increase in global copper production, the expansion of smelting capacity has outpaced it, leading to a tightening supply situation [4] - Recent incidents in Peru, particularly at the Antamina mine, could further strain copper supply if production is disrupted for an extended period [4] - Domestic copper smelting facilities are facing challenges due to low processing fees, which have dropped significantly, impacting their production viability [7] Group 3: Market Sentiment and Price Trends - Domestic refined copper inventories have been rapidly decreasing, influenced by high prices and a subsequent drop in purchasing enthusiasm from downstream sectors [8] - The traditional peak season for copper demand is nearing its end, and concerns about future demand are growing due to the potential impact of tariffs on exports, particularly in the machinery and electronics sectors [10] - Overall, while there is strong support for copper prices in the short term, the long-term outlook remains uncertain due to macroeconomic pressures and potential demand weakening [11]