{"id":73783,"date":"2026-10-28T20:08:22","date_gmt":"2026-10-29T00:08:22","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-update-central-banks-and-trade-policy-take-center-stage\/73783\/"},"modified":"2026-10-28T20:08:22","modified_gmt":"2026-10-29T00:08:22","slug":"global-markets-update-central-banks-and-trade-policy-take-center-stage","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-update-central-banks-and-trade-policy-take-center-stage\/73783\/","title":{"rendered":"Global Markets Update: Central Banks and Trade Policy Take Center Stage"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Bank of Canada (BoC) Governor Tiff Macklem<\/strong> warned that the <strong>neutral interest rate estimate may rise<\/strong>, following a <strong>25-basis point hike<\/strong> to <strong>2.50%<\/strong> to combat persistent inflation.<\/li>\n<li><strong>President Donald Trump<\/strong> issued a proclamation identifying <strong>imported robotics and industrial machinery<\/strong> as national security risks, initiating a <strong>180-day negotiation period<\/strong> with trading partners.<\/li>\n<li><strong>Keppel (<a href=\"\/stock\/BN4\">BN4<\/a>)<\/strong> reported a strong <strong>18% year-on-year growth<\/strong> in asset management fees for 9M 2026, reaching <strong>S$354 million<\/strong> as it accelerates its asset-light strategy.<\/li>\n<li><strong>The Hong Kong Monetary Authority (HKMA)<\/strong> maintained its base rate at <strong>4.25%<\/strong>, mirroring the U.S. Federal Reserve&#39;s decision to hold rates steady.<\/li>\n<li><strong>Japanese investors<\/strong> shifted back to domestic markets, selling <strong>\u00a592.6 billion<\/strong> in foreign bonds while foreign investors poured <strong>\u00a51.18 trillion<\/strong> into Japanese equities.<\/li>\n<\/ul>\n<h2>Central Bank Policy and Inflationary Pressures<\/h2>\n<p><strong>Bank of Canada<\/strong> Governor Tiff Macklem delivered a hawkish tone following the central bank&#39;s decision to raise the policy rate to <strong>2.50%<\/strong>. Macklem noted that the <strong>neutral interest rate<\/strong>\u2014the level at which policy is neither stimulative nor restrictive\u2014may be higher than previously estimated. He emphasized that current inflation forecasts are heavily influenced by the <strong>pass-through of fuel costs<\/strong>, and warned that <strong>U.S. fiscal policy is currently unsustainable<\/strong>, citing a lack of political will to address deficit spending.<\/p>\n<p>In Asia, the <strong>Hong Kong Monetary Authority (HKMA)<\/strong> kept its base rate unchanged at <strong>4.25%<\/strong>. This move follows the city&#39;s established <strong>Linked Exchange Rate System<\/strong>, which necessitates tracking the U.S. Federal Reserve\u2019s monetary policy to maintain the currency peg. While the base rate remained steady, local lenders have kept prime rates around <strong>5.00% to 5.25%<\/strong>, reflecting a cautious approach to domestic borrowing costs.<\/p>\n<h2>Trade Policy and National Security<\/h2>\n<p><strong>President Donald Trump<\/strong> has officially designated imports of <strong>robotics, industrial machinery, and their components<\/strong> as a threat to U.S. national security under <strong>Section 232<\/strong> of the Trade Expansion Act. While the White House did not impose immediate tariffs, the administration has directed the <strong>U.S. Trade Representative (USTR)<\/strong> to enter negotiations with foreign partners. If agreements to &quot;adjust&quot; import levels are not reached within <strong>180 days<\/strong>, the administration may move forward with <strong>tariffs, quotas, or fees<\/strong> to protect the domestic industrial base.<\/p>\n<h2>Corporate Performance and Asset Management<\/h2>\n<p><strong>Keppel (<a href=\"\/stock\/BN4\">BN4<\/a>)<\/strong> continues to see success in its transition toward a global asset manager model. The company added <strong>S$19.5 billion<\/strong> in new funds under management (FUM) year-to-date in 2026, with total asset management fees rising <strong>18%<\/strong> to <strong>S$354 million<\/strong> for the first nine months. Keppel also confirmed it has realized approximately <strong>S$940 million<\/strong> in asset monetisation this year, keeping it on track for its long-term goal of reaching <strong>S$10\u2013S$12 billion<\/strong> in divestments by the end of 2026.<\/p>\n<h2>Regional Economic Indicators and Capital Flows<\/h2>\n<p>In New Zealand, the <strong>ANZ Business Confidence Index<\/strong> showed a slight improvement to <strong>52.5<\/strong> in October, up from <strong>51.9<\/strong> in September. However, the <strong>Activity Outlook<\/strong> softened to <strong>46.2<\/strong>, down from <strong>47.9<\/strong>, suggesting that while general sentiment remains optimistic, firms are becoming more cautious about their own growth prospects. <em>Economists note that manufacturing remains a bright spot, while the agricultural sector continues to face headwinds.<\/em><\/p>\n<p>Japan&#39;s latest security flow data for the week ending October 23 reveals a significant rotation in capital. <strong>Foreign investors<\/strong> became aggressive buyers of <strong>Japanese stocks<\/strong>, with net purchases totaling <strong>\u00a51.18 trillion<\/strong>, a sharp reversal from the previous week&#39;s selling. Conversely, <strong>Japanese investors<\/strong> continued to retreat from international debt markets, selling <strong>\u00a592.6 billion<\/strong> in foreign bonds as rising yields at home make domestic government bonds increasingly attractive.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Bank of Canada (BoC) Governor Tiff Macklem warned that the neutral interest rate estimate may rise, following a 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