Fed Seen Near Halting Balance Sheet Drawdown

Risk assets firmed on easing trade tensions and rising odds of a QT pause. Data delays shift focus to earnings and liquidity.

TL;DR:

• 🏦 Fed seen pausing QT soon
• 🌏 Asian stocks rally on easing trade
• 🧱 TSX futures up on metals
• 🗓️ Inflation data delayed; earnings in focus

Fed Seen Pausing QT Soon

Several Wall Street analysts expect the Federal Reserve to halt quantitative tightening after turbulence in short-term funding markets. A pause would ease reserve pressure, stabilize money markets, and could support broader risk sentiment. Traders are watching front-end rates and liquidity proxies for confirmation. Source

Asian Stocks Rally on Easing Trade

Asian markets surged as U.S.-China trade tensions eased and credit worries subsided, with optimism building ahead of a Trump–Xi meeting. The risk-on move lifted cyclicals and tech, setting a positive tone for global equities. Follow-through depends on headlines and earnings quality. Source

TSX Futures Up on Metals

TSX futures climbed about 0.4%, helped by stronger metal prices into a busy week for data and earnings. Miners led the bid while traders positioned for inflation prints and corporate results. Commodity sensitivity keeps the CAD and resource equities in focus. Source

Inflation Data Delayed; Earnings in Focus

The U.S. government shutdown pushed key Labor Department inflation reports to October 24, thinning this week’s macro visibility. With fewer data catalysts, markets lean on earnings, guidance, and liquidity signals to set direction. Rate expectations stay fluid until fresh inflation reads arrive. Source