This week in the financial markets, strong economic data emerged from the United States, complemented by another week of tech earnings where major tech companies exceeded analysts’ estimates. Yet, when taking a broader and longer-term perspective into account, concerns of an impending recession, coupled with heightened capital expenditure (CAPEX) pressures, weighed down on stock markets.

On Top of Our Mind This Week: US GDP shows robust growth QoQ

Source: Seasonally adjusted annual rate, U.S. Bureau of Economic Analysis via FRED, as of Oct. 26, 2023

Robust Economic Growth Amidst Rising Interest Rates In the third quarter, the US economy exhibited significant strength, with a remarkable annualised growth rate of 4.9% compared to last quarter, the highest since 2021. This upturn was underpinned by robust spending from both the consumer and government. It is particularly noteworthy that the economy continued to be resilient despite grappling with the steepest interest...