Trade negotiations between the US and South Korea have hit a roadblock as President Donald Trump demands a $350 billion investment from South Korea during the Asia-Pacific Economic Cooperation summit. South Korean officials are concerned that such a large cash investment could destabilize their economy and have proposed loans and loan guarantees instead.

Major global companies such as Amazon, Nestle, and UPS are announcing thousands of job cuts across the United States and Europe, with American firms disclosing over 25,000 cuts this month alone. While some layoffs are tied to new CEO strategies or tariff pressures, the widespread cuts are raising concerns among investors about broader economic health.

The Federal Reserve is widely expected to lower its benchmark interest rate by a quarter percentage point, moving it to the 3.75%-4.00% range. The rate cut aims to address persistent job market concerns and maintain economic stability as hiring slows and inflation remains subdued.

Treasurys have seen a significant drop in volatility recently, but investors are eyeing Federal Reserve Chair Jerome Powell's upcoming news conference for potential changes. With policymakers divided on interest rates amid a softening labor market and persistent inflation, any hawkish comments from Powell could push 10-year yields above 4%.

Yen options trading volume has reached its lowest level in a month as investors hold back ahead of the Bank of Japan's upcoming policy decision. Data from the Depository Trust & Clearing Corporation shows that activity on both Monday and Tuesday was subdued, reflecting a wait-and-see approach as investors also wait on the Federal Reserve to announce its decision.

Tech sector stocks led gains in Asian markets, with the MSCI regional index climbing 0.5% as chipmakers like SK Hynix and Advantest surged following strong earnings. Anticipation is high for upcoming earnings reports from major US tech companies, including Microsoft, Alphabet, Meta Platforms, Amazon, and Apple, which together represent roughly a quarter of the S&P 500.

Optimism over a potential trade agreement between the US and China boosted the US dollar on Wednesday. US President Donald Trump, ahead of a meeting with Chinese President Xi Jinping, expressed confidence in reaching a "great deal" when they meet later on this week. China's recent purchase of US soybeans also indicated easing tensions.

China's new five-year plan aims to significantly increase the household consumption rate, signaling a shift toward domestic demand as a key driver of economic growth. While the document does not specify how the rate will be measured, analysts suggest the government may introduce annual consumption growth targets when the plan is formally approved next year.

Join us in Brussels on 12 November 2025 to celebrate 20 years of AFME's European Government Bond Conference. Bringing together 120+ professionals, this flagship event offers expert-led panels, keynotes, and roundtables focused on the latest developments impacting European Government Bond markets and Debt Management Offices. Designed with input from AFME members, the programme explores key market trends, regulatory updates, and evolving policy priorities. Held at the Radisson Collection Hotel, the conference provides valuable insights, CPD hours, and excellent networking opportunities for senior stakeholders across the European public debt and capital markets landscape.