The Fed emerged as the central focus in November amid growing scepticism over a potential December rate cut. The doubt was triggered by Jerome Powell’s remark that a December cut “is far from a foregone conclusion,” reinforced by subsequent comments from other Fed officials. Labour market data released after the government shutdown added further uncertainty, with Non-Farm Payrolls rising 119k MoM—exceeding expectations and reversing August’s decline—while September’s unemployment rate increased to 4.4%, the highest since 2021. These mixed signals, combined with the absence of October data, further constrained the Fed’s room to ease policy in December. However, the scepticism eventually faded following a shift in sentiment after Donald Trump nominated the next Fed chair, who is widely expected to move quickly on rate cuts.

Global equity markets also experienced heightened volatility throughout the month due to concerns surrounding AI. Investors grew increasingly wary of a potential AI bubble driven by the astronomical valuations of several AI-related companies, uncertainty around the return on AI investment, and cross-financing within the sector. Nevertheless, strong earnings from major players such as NVDA and GOOG helped ease these concerns.

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MGSED A	MGSED invests in Sharia-compliant Equities Abroad listed in the Sharia Securities List. Categorized as a Long-Term investment with high risk. Investors bear the risk associated with the equity portfolio.
MASED A	MASED invests in Sharia-compliant Equities in Asia listed in the Sharia Securities List. Categorized as a Long-Term investment with high risk. Investors bear the risk associated with the equity portfolio.

 

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DISCLAIMER

The opinions expressed in the article are for general informational purposes only and are not intended to provide specific advice or recommendations for individuals or specific mutual fund or investment products. It is intended solely to provide education about the financial industry. Views reflected in the content may change at any time without notice. All performance data and investment returns mentioned in this article cannot be used as a basis for calculation to buy or sell a mutual fund. This data is performance records based on historical data and is not a guarantee of future mutual fund performance. Investment through mutual funds carries risks. Investors are required to read and understand the prospectus before deciding to invest through mutual funds.In July, global market appeared to be tinted with a more bullish sentiment. We saw an almost uniform increase in the indices of US, China, and Indonesia, with EU lagging behind. The movement may be an indication of what the market sees as stabilisation in global economic & political landscapes, such as near-term conclusion of US tariffs and Trump’s softening stance on China. At the time of writing, many countries have struck a deal regarding tariffs with the US. Major countries such as India have secured a 25% tariff, while the EU is at 15%. In light of this deal, Trump has also expressed a more friendly tone toward China, mentioning that he will deal with the country in a very friendly fashion. We note however that China itself is still in a negotiating process with the US, and faces a separate deadline until the 12th of August. Indonesia itself secured a 19% tariff deal, on par with the Philippines but relatively lower compared to peers. Regardless, global market itself seems to have become comfortable with the tariff issue, and further news on negotiations or deals may have a more muted impact going forward. China’s domestic economy has also shown some positive signs, including its 5.2% YOY GDP growth in 2Q25, supported by frontrunning companies seeking to secure inventory before additional tariff uncertainties. China has also recently made an announcement on the largest dam in the world to be built, while at the same time conducting an audit of its coking coal miners. The project, alongside the audit may benefit commodities relating to metallurgy and at the same time push China’s economy toward further recovery.

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