Wall Street: Breadth Improves as Volatility Eases

U.S. equities ended the session broadly higher, extending October’s recovery. The Russell 2000 climbed 1.24% to 2,513.47, outpacing large-cap peers as investors rotated toward smaller, domestically focused companies. The Dow Jones Industrial Average gained 1.01% to 47,207.12, and the Nasdaq Composite advanced 1.15% to 23,204.87, boosted by semiconductor and AI-linked names such as NVIDIA (+2.25%) and AMD (+7.63%).

Volatility declined notably — the VIX fell 5.38% to 16.37, reflecting renewed market confidence. Treasury yields edged higher, with the 10-year yield at 3.997% and the 30-year at 4.585%, suggesting investors remain alert to inflation pressures even as equities rally.

Europe: Steady Gains, Cautious Optimism

European equities advanced modestly amid steady investor sentiment. The FTSE 100 rose 0.70% to 9,645.62, the MSCI Europe gained 0.29%, and the DAX Performance-Index added 0.13% to 24,239.89. The Euro Index inched up 0.05%, while the British Pound Index slipped 0.13%.
Industrial and materials shares continued to attract inflows — the Basic Materials sector is now up 26.44% year-to-date — reflecting interest in cyclical exposure even as the macro backdrop remains mixed. Analysts noted that upcoming European Central Bank signals on policy tightening will determine whether the region can sustain momentum into year-end.

Asia: Korea and Japan Outperform

Across Asia, markets were stronger overall. The KOSPI Composite Index surged 2.50% to 3,941.59, while Japan’s Nikkei 225 gained 1.35% to 49,299.65, supported by a weaker yen (the Japanese Yen Index down 0.19%). The Hang Seng advanced 0.74%, and China’s Shanghai Composite rose 0.71%, while India’s SENSEX eased 0.41% after recent highs.
The gains underscore investor confidence in export-driven economies and ongoing recovery in regional manufacturing and technology sectors.

Commodities and Currencies: Mixed Momentum

Commodity markets softened slightly. Gold fell 0.45% to $4,126.90/oz, silver dropped 0.60%, and Brent crude declined 0.18% to $65.87/barrel. Copper futures edged higher (+0.14%) as industrial demand stabilized.
In currencies, the U.S. Dollar Index was nearly flat at 98.94, while EUR/USD traded modestly higher at 1.1632 (+0.09%), and USD/JPY climbed to 152.81 (+0.15%), continuing the yen’s weakness.

Outlook: Rotation Gains Ground

The global rally reflects a shift from defensive postures toward broader participation. Improved market breadth, falling volatility, and resilient earnings support near-term optimism. However, rising yields and inflation uncertainty could restrain further upside.
Investors are watching the next round of economic data — particularly U.S. inflation figures and central-bank commentary — to gauge whether this rotation evolves into a sustained bull phase or remains a short-term relief rally.