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    Multi-asset chart of the week

    Multi Asset chart of the week

    21 October 2025 Multi-asset
    Week to 24 October 2025

    Japanese equities have reacted positively to the leadership change in Japan

    Stephanie Chan, CFA, Portfolio Manager, said: “On 4 October, Sanae Takaichi won the Liberal Democratic Party presidential election, contrary to expectations and pre-election polling. With the support of a coalition partner, Takaichi was elected as Japan’s prime minister on 20 October. Takaichi is a proponent of higher government spending and tax breaks to help to relieve the rising cost of living in Japan. The increased expectations of fiscal easing has sent Japanese equities rallying almost 8% since the LDP election; in the same period, the Japanese Yen has weakened more than 3%.”

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    Source: Insight Investment, Bloomberg as at 21 October 2025.

    Week to 17 October 2025

    Q3 2025 S&P 500 YoY earnings growth estimates highest for financials and IT

    Stephanie Chan, CFA, Portfolio Manager, said: “Earnings season for Q3 begins in earnest this week and almost 70% of the S&P 500 market cap will be reporting over the next 3 weeks. Analysts are expecting strong earnings growth from the financials and information technology sectors. For the first time since Q4 2021, analysts have positively revised their EPS estimates for the quarter, despite the ongoing concerns around inflation and tariffs. Financials and information technology are the two sectors contributing the most to the overall positive earnings growth for the index, and markets will be looking for strong reports in these sectors to keep the equity rally going.”

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    Source: Insight Investment, FactSet, Bloomberg as at 14 October 2025.

    Week to 10 October 2025

    The proportion of Americans owning equities is highest since the GFC

    Stephanie Chan, CFA, Portfolio Manager, said: “The proportion of Americans owning equities is highest since the GFC, at 62%. Equity ownership is greatest amongst higher-income earners: 87% of respondents in the upper income group own equities while only 28% of respondents in the lower income group own equities. As US equities continue to rally, this might help to explain why consumption remains strong amongst the higher income quintiles.”

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    Source: Insight Investment and Gallup Polls as at 07 October 2025

    Week to 03 October 2025

    US Equities tended to shrug off past US federal government shutdowns

    Stephanie Chan, CFA, Portfolio Manager, said: “The US federal government is likely facing a shutdown on 1 October given the lack of agreement within Congress to continue funding the government. Since 1980, there have been 10 periods of government shutdowns. Only 3 of the shutdowns lasted for more than 15 days, in 1995, 2013, and 2018. Equities rose during those 3 periods, while the US dollar and the US 10-year yield had muted reactions. The longest shutdown, lasting 35 days, occurred in December 2018 and equities rallied by 13%. However, the equity reaction is likely unique to this period, as the shutdown happened at the end of a protracted market drawdown during the last quarter of 2018.”

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    Source: Bloomberg and Insight Investment as at 30 September 2025

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