US equities climbed 1.7% as risk-on sentiment returned, even amid elevated volatility.1 Optimism was driven by signs of progress in US–China trade talks and a strong start to the Q3 earnings season, led by major banks. Wells Fargo, Bank of America, and Morgan Stanley all reported results that exceeded expectations, easing investor concerns following recent weakness among regional lenders.2 Semiconductor and artificial intelligence stocks also advanced after ASML’s upbeat earnings, which propelled its shares more than 7% higher for the week.3
Closer to home, the ASX 200 rose 0.4% for the week as strength in materials offset headwinds from a hawkish RBA and downgraded growth outlooks.4 RBA Assistant Governor Sarah Hunter warned that inflation risks remain elevated, with Q3 data likely to come in hotter than expected.5 Her comments were interpreted as keeping the door open to further tightening, given the labour market’s resilience despite a modest uptick in unemployment. Meanwhile, robust gold prices and easing US–China tensions supported the materials sector, with the S&P/ASX 200 Materials Index gaining over 4% for the week.6
Precious metals (ETPMPM) particularly gold (GOLD, GLDN, (GXLD), NUGG, PMGOLD, QAU) were once again the week’s top performers, as renewed concerns over US regional bank loans reinforced investor caution around economic tail risks. Retail momentum in the asset class remains exceptionally strong, with Australian gold ETFs reaching a new all-time annual record of $996.7 million in net inflows as of October 20, 2025.7
In the world of commodities:
- Canadian uranium miners (ATOM) were major outperformers last week after Canadian PM Carney pitched deeper cooperation with US on energy in his meeting w/ President Trump on Tuesday.8
- Gold (GOLD) surged to new heights above US$4300 per ounce after regional lenders, Zions Bancorp and Western Alliance Bancorp, disclosed problems with loans involving allegations of fraud, which adds to concern that there are cracks emerging in the creditworthiness of borrowers.
- Clean hydrogen firms (HGEN) outperformed after Brookfield Corporation agreed to invest up to US$5 billion to deploy industry leader Bloom Energy’s fuel cells across its new AI data centre projects.
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