Markets Balance Politics and Earnings Strength Amid Global Uncertainty

Edmond de Rothschild’s Market Flash (24 Oct 2025) reflects on a week where geopolitics, earnings, and macro data pulled in different directions.

• Trump–Xi talks are back on, even as new U.S. software restrictions on China raise tensions. Despite this, China’s Q3 GDP grew 4.8%, with industrial output beating expectations, while weak retail data underscores fragile domestic demand.

• Earnings momentum remains solid: 58% of European firms and 84% of U.S. companies beat Q3 forecasts, supporting equities despite caution around a few large-cap misses.

• Japan’s market surged after a new coalition government under PM Sanae Takaichi, while in Europe, France’s downgrade to A+ and UK fiscal tightening added macro headwinds.

Will strong earnings offset the drag from politics and policy risk? The full report offers detailed insights across regions and asset classes.