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U.S. stocks are rebounding with strong Q3 earnings, leading to a preference for broad U.S. equities driven by resilient earnings and potential Fed rate cuts, while Japanese stocks remain appealing amid solid earnings, and weak growth keeps European stocks underweight except for select sectors like financials.

This week, market attention will focus on US quarterly earnings, the Fed’s Beige Book, and key international events like the IMF-World Bank meeting and BRICS summit, while central bank commentary and data releases, including US PMI, durable goods, and consumer sentiment, will shape economic outlooks amidst election-driven volatility; last week saw a mixed US economic picture, a strengthening dollar, lower oil prices due to demand concerns, and China’s economic stabilization efforts amid policy easing.

China’s stock surge highlights the benefit of targeting global opportunities with clear catalysts, while BlackRock maintains a U.S. equity overweight on expanding AI themes, favors Japanese stocks for their strong outlook, holds a less confident overweight in UK stocks, and upgrades UK gilts with expectations for deeper policy rate cuts.

In a US holiday-shortened week, markets will focus on retail sales, corporate earnings, and key data releases like UK and Eurozone CPI, while China’s GDP and fiscal measures draw attention; a mixed week saw a rise in the 10-year US Treasury yield, solid bank earnings boosting equities, and oil prices rising amid geopolitical concerns, with US inflation data remaining sticky despite some cooling signals.