Global Markets Brief: Stronger Yuan Fix, Oil Outlook Softens, Nvidia in Focus
Global markets opened to a mix of macro signals, from a firmer yuan setting to shifting energy price projections and closely watched tech earnings. Reports indicate the U.S. administration has been quietly engaging with Russia on a proposal to end the war in Ukraine, a development that could influence risk sentiment if it gains traction.
In currency markets, the People’s Bank of China set the USD/CNY central parity at 7.0872, a stronger-than-expected fix versus estimates near 7.1121. The move underscores ongoing efforts to stabilize the yuan and temper volatility in foreign exchange markets. Meanwhile, Goldman Sachs expects a supply-driven oil surplus of around 2 million barrels per day through 2026, projecting Brent crude to average $56 and WTI $52 in 2026, before underinvestment drives a rebound from 2027 with Brent returning toward $80 by 2028. Equity sentiment remains tied to Nvidia’s forthcoming results and guidance; any softness in its Q4 outlook could trigger a broader pullback across AI hardware and chip-related stocks.
In Australia, the Australian dollar was little changed after wages growth printed in line with both market expectations and the Reserve Bank of Australia’s outlook. Domestic momentum showed tentative improvement, with the Westpac Leading Index rising 0.11% month-on-month in October 2025 and the closely watched six‑month annualized growth rate ticking higher. Together, these signals paint a picture of cautious stability across FX, energy, and equity markets as investors parse policy cues, corporate earnings, and macro data.
Key Points – PBOC set the USD/CNY central parity at 7.0872, stronger than estimates around 7.1121. – Reports suggest new U.S.–Russia coordination on a proposal to end the war in Ukraine. – Goldman Sachs sees an oil surplus through 2026, with Brent averaging $56 and WTI $52 that year. – Energy prices are projected to rebound from 2027, with Brent nearing $80 by 2028. – Nvidia’s earnings and Q4 guidance are pivotal for AI hardware and broader equity sentiment. – Australia’s wages matched expectations; Westpac Leading Index rose 0.11% m/m in October 2025.
