October consolidated itself as a historic month for international financial markets. The main stock indices – the S&P 500, Nasdaq and Dow Jones in the United States, the CAC 40 in France, the Nikkei 225 in Japan, the KOSPI in South Korea and the CSI 300 in China – reached all-time highs, driven by better-than-expected corporate results and economic policy measures that reinforced global risk appetite.
Despite episodes of political volatility, such as the temporary government shutdown in Washington or geopolitical tensions in Asia, the tone of the markets remained firmly bullish, supported by record corporate profits and a general improvement in global growth expectations for the end of 2025.
Wall Street: record balance sheets and resilience in the face of the shutdown
In the United States, the three major stock indices closed several rounds at historic highs. The S&P 500 has advanced more than 4% so far this month, driven by the rebound in the financial sector and the strength of technology companies.
Among the notable results, JPMorgan Chase surprised the market with higher-than-expected profits, driven by its investment banking business and the recovery of corporate credit. Meanwhile, Coca-Cola reported organic revenue growth of 6% year-on-year and improvements in margins, consolidating its defensive profile within the Dow Jones
Although the temporary shutdown of the US government generated uncertainty in the first days of October, investors interpreted the episode as temporary and focused on the likelihood that the Federal Reserve will maintain a more flexible stance on rates during the first quarter of 2026.
Europe: French luxury led the CAC 40 rally
The CAC 40 in Paris reached new historical highs driven by the performance of the luxury sector. **LVMH** led the increases with sales that far exceeded market expectations, in a context of recovery in Chinese demand for premium goods.
Although L’Oréal presented results with moderate growth and generated some profit taking, the general tone remained optimistic. European analysts highlighted the ability of the companies in the index to sustain high margins despite the economic slowdown in the eurozone.
Asia: records in Japan, Korea and sustained rebound in China
In Asia, stock indices also recorded notable gains. The Nikkei 225 hit multi-year highs thanks to the weak yen and renewed optimism over a fiscal stimulus package announced by the Japanese government. Exporters and technology companies were particularly favored.
In South Korea, the KOSPI surpassed its record levels driven by Samsung Electronics, which reported its best quarter in three years thanks to the rebound in memory chip prices and strong demand for products linked to artificial intelligence. The semiconductor sector once again positioned the Seoul Stock Exchange among the best performers in the world in 2025.
For its part, China’s CSI 300 has rallied strongly since late September and hit multi-year highs, supported by support measures from the People’s Bank of China, cuts in bank reserve requirements and stimulus aimed at credit and housing. Banking and real estate stocks led the rise, although the market continues to show episodes of high volatility due to geopolitical tensions with the United States.
Analysts agree that the global momentum comes from a combination of solid corporate results, selective fiscal stimuli and expectations of global interest rate cuts in 2026. However, they warn that much of the rally was concentrated in a few sectors – technology in the US and Asia, luxury in Europe and banks in China – which leaves room for corrections in case of surprises. negative.
In the short term, the risks include a possible prolongation of the fiscal conflict in the United States, trade tensions or signs of cooling in the Chinese economy. Even so, the resilience shown by leading companies and the synchronized recovery of emerging markets allow us to anticipate a positive end to the year.
October will be recorded as the month in which the world’s major indices continued to set new historical highs, reflecting the strength of the main economies and the confidence of investors in an orderly deceleration of the global cycle.
From New York to Tokyo, corporate balance sheets and coordinated economic policies returned to markets a factor that had been absent for much of the year: confidence in growth.
Financial Analyst
Source: Ambito
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