Global markets faced a turbulent week, with most indices ending in negative territory amid persistent inflationary pressures, geopolitical uncertainties, and policy shifts, according to MIDF Amanah Investment Bank Bhd.

In the US, retail sales rose by +0.4% in October, surpassing expectations of +0.3%. However, industrial production contracted by -0.3%, weighed down by strikes and natural disasters, signalling a mixed economic outlook. Inflationary pressures persisted as the core producer price index (PPI) increased by +0.3% month-on-month and +3.1% year-on-year, driven by categories like portfolio management.

Regionally, the Hang Seng Index saw the steepest decline at -6.28%, followed by South Korea's KOSPI (-5.63%) and the Philippines' PSEi (-4.31%). Singapore's Straits Times Index was the only gainer, edging up by +0.55%. The FBM KLCI fell by -1.78%, reflecting broader regional trends.

In Japan, a USD65 billion initiative to boost the semiconductor and artificial intelligence sectors was announced, part of Prime Minister Shigeru Ishiba's push for technological resilience and competitiveness. Meanwhile, Australia's wage growth slowed to +0.8% for the third quarter, reflecting easing inflationary pressures.

The Ringgit weakened by -2.11% against the US dollar, closing at RM4.4748, while Brent crude oil prices fell -3.83% to USD71.04 per barrel. Crude palm oil prices dipped slightly by -0.25% to RM5,088 per tonne.

The European Commission projected modest economic growth for the eurozone, with GDP expected to rise by +1.3% in 2025 and +1.6% in 2026, alongside inflation stabilising at the European Central Bank's 2% target. However, concerns over US trade policies and geopolitical risks remain significant challenges.

These developments underscore the fragility of the global economy as it navigates inflationary trends, policy changes, and international uncertainties.