Markets Today: China Industrial Output Hits 14-Month Lows as Wall Street Losses Spill Over into Asia, Europe

Most Read: Dow Jones & S&P 500 Slip More Than 1%, Focus on US Data Releases as Rate Cut Bets Tumble

Asian stock markets tumbled on Friday, joining a worldwide selloff after hawkish comments from Federal Reserve officials dampened hopes for a US interest rate cut next month.

This fear, combined with a messy schedule of economic data, caused Wall Street to snap its four-day winning streak with its biggest one-day fall since April, which then spread to Asia.

Key regional markets saw steep declines: Japan's Nikkei fell 2%, Australia's resource shares slid 1.4%, and South Korea tumbled by as much as 3.6%. Separately, Chinese stocks also eased 0.9% after new monthly data confirmed that both factory production and retail sales slowed down in October, missing analyst expectations.

Take a look at how US markets ended yesterday, sentiment which has spilled over into Asian trade.

China’s industrial production grew by 4.9% in October, which was a significant slowdown from the 6.5% growth in September and missed the expected growth of 5.5%. This was the weakest increase seen since August 2024, mainly because activity slowed down in manufacturing and mining, partly due to the Golden Week national holiday.

However, the production of electricity, heat, gas, and water actually accelerated. Despite the overall slowdown, growth was still seen in 29 out of 41 major industries, including very strong performances in the automotive, computer/communications, and shipbuilding sectors. For the first ten months of the year, industrial production has risen by 6.1%.

Early European stock futures showed a mixed start, but the past 24 hours have been difficult for global markets as traders suddenly lost confidence that the US Federal Reserve will cut interest rates in December, now seeing the chance as 50/50. This uncertainty caused global stocks, Treasury bonds, and the US dollar all to fall.

Adding to the bad mood, new data confirmed that China's factory production and retail sales grew at their slowest pace in over a year during October. Compounding the issue, Federal Reserve official Neel Kashkari further reduced optimism by stating he opposed the rate cut last month and is still unsure about supporting a cut in December.

In early European trading, Euro Stoxx 50 futures were down 0.4%, German DAX futures rose 0.1% and FTSE futures slid 0.5%.

On the FX front, the US Dollar (USD) is set to end the week lower, with its overall strength remaining near a two-week low and on track for a 0.4% weekly fall.

The Swiss Franc similarly held near its strongest level in over three weeks against the Dollar.

Meanwhile, the British Pound fell 0.3%, unable to keep the gains it made overnight against the weaker Dollar.

In China, the Yuan hit a one-year high against the Dollar, as local exporters reportedly sold off their dollars after the exchange rate crossed a key level.

Currency Power Balance

Oil prices surged by about 2% on Friday because of renewed worries over global supply after a Ukrainian drone attacked a major oil export hub in Russia, the Black Sea port of Novorossiysk. Russian officials confirmed that the attack early on Friday damaged the oil depot, apartment buildings, and a ship in the port, injuring three crew members.

Following this news, both major benchmarks saw significant jumps, with Brent crude futures rising to $64.25 a barrel and US West Texas Intermediate crude climbing to $59.94 a barrel.

Gold prices rose on Friday and are set for a weekly gain, primarily supported by a weaker US Dollar. The market is currently waiting for the release of more US economic data to get a better sense of whether the Federal Reserve will still cut interest rates in December, especially following recent comments from Fed officials that sounded against a rate cut.

Spot gold was up 0.7% at 4,201.70/oz and has posted a strong overall gain of 5% so far this week.

Read More:

WTI Oil Up 1.7% as Markets Grapple with Geopolitical Shocks and Structural Supply Glut

Gold (XAU/USD) Price Forecast: Bullish Breakout Gathers Pace as Fed Pivot Expectations Firm, $4250/oz Incoming?

On Friday, markets will be influenced by several major announcements.

In terms of company earnings, three large firms are reporting: the German insurer Allianz, the Swiss reinsurance giant Swiss Re, and the British aerospace and defense company Rolls-Royce Holdings.

Regarding economic data, attention will be on Europe:

France will release its final inflation rate (CPI) for October.

The Eurozone will release several important figures, including the first official estimate for economic growth (GDP) in the third quarter, flash data on job changes (Employment flash) for the third quarter, and trade figures (trade balance) for September.

Moving to the US and markets will be hoping for more clarity regarding October data and whether or not it will be released. If it is confirmed that the jobs data and CPI data for October is not going to be released, this could add to market uncertainty and leave sentiment fearful heading into the weekend.

From a technical standpoint, the FTSE 100 has pulled back significantly over the last two days.

The index has declined around 200 points as it has followed on from the dent to sentiment which has dragged down US stocks as well.

On the four-hour chart below, the overall structure remains bullish until we get a four-hour candle close below the swing low at 9661.

If price fails to breach the previous swing low, a bounce and recovery remains on the cards. This will however depend on the overall market sentiment improving.

FTSE 100 Index Daily Chart, November 14, 2025

Follow Zain on Twitter/X for Additional Market News and Insights @zvawda