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US equity markets rallied last week, led by Nasdaq's tech stocks, despite hawkish remarks from Powell. Inflation data is improving, and expectations of continued economic and corporate profit growth could see the rally continue. The U. of Michigan inflation expectations overshot consensus, and consumer sentiment slipped. The Treasury's announcement of a smaller-than-expected boost to bond issuance buoyed the S&P 500, and talks of a possible end to QT capped the yield. The S&P 500 Index advanced 1.6% to breach the key 4,400 resistance level.

In Europe, major indices were mixed, with gains in Eurostoxx 50 and falls in UK FTSE 100 and Swiss SMI. Eurozone final October Composite PMI was in-line with the preliminary estimate, and retail sales fell.

In Asia, performance was mixed, with the Hang Seng Index being the worst performing market, driven by negative China trade and inflation numbers. China's latest trade data showed exports declined for a 6th consecutive month, and imports surprisingly rebounded. The IMF upgraded China's 2023 and 2024 GDP growth forecasts. Australia's RBA lifted its cash rate, and Indonesia's 3Q23 GDP grew 4.94% yoy.

Moody's changed the outlook on the US's Aaa sovereign credit rating to Negative, citing increased downside risks to the US's fiscal strength and large fiscal deficits.