The Market ThesisDaily Summary
Asia & Pacific Edition
November 4, 2026 at 5:30 AM ET
By MacroGlide's Analysts
Markets Recap for November 3, 2026
RBA Raises Rates Again, Signals Tough Economic Times Ahead
What's in the markets today?
The Reserve Bank of Australia delivered a rate hike decision, raising its policy rate to 4.85 and citing persistent inflation as a key driver for the move. Following the decision, market attention turned to the impact on household finances and lending conditions, with analysts highlighting rising costs for borrowers and businesses throughout Australia. In New Zealand, the government released building permits data showing a decline of 7.9, signaling a slowdown in construction activity as higher rates weigh on the property sector. Hong Kong’s Hang Seng Index advanced 0.57% after technology and consumer stock gains, while major Japanese benchmarks were closed for the session. Meanwhile, gold prices slipped 0.74% in Asia trade.
Benchmark Moves
The Hang Seng Index rose 0.57%, led by gains in technology and consumer stocks. Separately, the Reserve Bank of Australia announced a policy rate hike to 4.85%, raising borrowing costs across the region. Gold prices dropped 0.74%, reflecting the impact of tighter monetary policy on demand for non-yielding assets. The policy decision reprices expectations for rates and capital flows across Asian markets. This move signals ongoing central bank pressure on broad market conditions across assets.
Market data as of Nov 3, 2026 at 4:00 PM ET.
Market data as of Nov 3, 2026 at 4:00 PM ET.
Market data as of Nov 3, 2026 at 5:00 PM ET.
Key Financial Reports
Earnings reports from major companies showed varied performance. Yum China Holdings, Inc. (YUMC) reported an EPS of $0.91, driven by strong revenue growth and operating profit. However, the company acknowledged challenges with same-store sales remaining below the prior year. Luckin Coffee Inc. (LKNCY) delivered an EPS of $0.89, supported by record profitability and substantial revenue growth, despite facing a decline in same-store sales. Overall, these results highlight resilience in the consumer sector amid ongoing economic pressures.
EPS reported on November 3, 2026 ET. Figures use each company's reported basis.
Key Macroeconomic Reports
Australia's economy is facing tighter conditions after the RBA raised its policy rate to 4.85%. In New Zealand, building permits fell sharply by 7.9%, showing a slowdown in construction activity. Together, higher borrowing costs and weaker building signals point to cooling demand across the region. This combination supports the case for markets to price in ongoing pressure on rate-sensitive sectors.
Macroeconomic data released on November 2, 2026 ET.
Top Stories
A quick look at the five stories that shaped today's market sentiment. Explained with brief context highlighting why each story mattered today.
Source: Australian Financial Review
‘Feels like a recession’, says Bullock as cash rate hits 4.85pc
Reserve Bank of Australia governor Michele Bullock stated that many Australians may feel as though they are in a recession due to the central bank raising interest rates to 4.85%, the highest in 18 years. This decision, made by six of the nine monetary policy board members, marks the fifth increase this year. The rise is attributed to concerns over widespread inflation, which has intensified pressure on Treasurer Jim Chalmers to reduce government spending.
Source: Australian Financial Review
Canva revenue stuck in mud, confidential data shows; job cuts loom
Canva is facing potential staff layoffs as its leadership team reviews internal data showing a decline in active users and stagnant revenue growth. The company, valued at $US31 billion ($44.3 billion), reported an annualized revenue of approximately US$3.69 billion at the end of October, unchanged from earlier this year. Co-founder Mel Perkins expressed regret over the disruption caused by the layoffs, as the company seeks effective strategies to attract users and enhance profitability.
Source: Australian Financial Review
Chalmers must cut spending to solve inflation problem
The AFR View emphasizes the need for Treasurer Jim Chalmers and the expenditure review committee to pursue real savings in the upcoming MYEFO to avoid further interest rate hikes. The Reserve Bank of Australia has raised the cash rate to 4.85%, its fifth increase this year, following a period of lower rates compared to other countries. Governor Michele Bullock indicated that this rate rise would feel like a recession for many Australians due to the impact of inflation and stagnant wage growth.
Source: Australian Financial Review
This is the RBA’s cruellest rate rise. Australia is becoming K-shaped
The Reserve Bank's fifth rate increase this year is expected to disproportionately affect young families and small businesses, intensifying economic challenges. The article reflects on the atmosphere at Flemington Racecourse before the Melbourne Cup, contrasting the excitement of the event with the economic strain felt by many. The ongoing rate hikes signal a growing divide in the economy, as some sectors experience significant pain while others remain insulated.
Source: Australian Financial Review
RBA’s ugly outlook spells tough times for Australia’s economy
The Reserve Bank of Australia has updated its forecasts for economic growth, inflation, and unemployment, revealing a fragile economic outlook. The recent increase in the cash rate to 4.85% is accompanied by concerning data in the bank's quarterly Statement on Monetary Policy. Governor Michele Bullock acknowledged that many Australians may feel poorer, leading to perceptions of a recession, despite the bank not forecasting a technical recession for the overall economy.
Other Headlines
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Asia & Pacific Edition
November 4, 2026 at 5:30 AM ET
Markets Recap for November 3, 2026
RBA Raises Rates Again, Signals Tough Economic Times Ahead
What's in the markets today?
The Reserve Bank of Australia delivered a rate hike decision, raising its policy rate to 4.85 and citing persistent inflation as a key driver for the move. Following the decision, market attention turned to the impact on household finances and lending conditions, with analysts highlighting rising costs for borrowers and businesses throughout Australia. In New Zealand, the government released building permits data showing a decline of 7.9, signaling a slowdown in construction activity as higher rates weigh on the property sector. Hong Kong’s Hang Seng Index advanced 0.57% after technology and consumer stock gains, while major Japanese benchmarks were closed for the session. Meanwhile, gold prices slipped 0.74% in Asia trade.
Benchmark Moves
The Hang Seng Index rose 0.57%, led by gains in technology and consumer stocks. Separately, the Reserve Bank of Australia announced a policy rate hike to 4.85%, raising borrowing costs across the region. Gold prices dropped 0.74%, reflecting the impact of tighter monetary policy on demand for non-yielding assets. The policy decision reprices expectations for rates and capital flows across Asian markets. This move signals ongoing central bank pressure on broad market conditions across assets.
Indexes
Detailed View →Market data as of Nov 3, 2026 at 4:00 PM ET.
Stocks
Detailed View →Market data as of Nov 3, 2026 at 4:00 PM ET.
Commodities & Crypto
Detailed View →Market data as of Nov 3, 2026 at 5:00 PM ET.
Key Financial Reports
Earnings reports from major companies showed varied performance. Yum China Holdings, Inc. (YUMC) reported an EPS of $0.91, driven by strong revenue growth and operating profit. However, the company acknowledged challenges with same-store sales remaining below the prior year. Luckin Coffee Inc. (LKNCY) delivered an EPS of $0.89, supported by record profitability and substantial revenue growth, despite facing a decline in same-store sales. Overall, these results highlight resilience in the consumer sector amid ongoing economic pressures.
Earnings Per Share (EPS)
Detailed View →EPS reported on November 3, 2026 ET. Figures use each company's reported basis.
Key Macroeconomic Reports
Australia's economy is facing tighter conditions after the RBA raised its policy rate to 4.85%. In New Zealand, building permits fell sharply by 7.9%, showing a slowdown in construction activity. Together, higher borrowing costs and weaker building signals point to cooling demand across the region. This combination supports the case for markets to price in ongoing pressure on rate-sensitive sectors.
Macroeconomic Data
Detailed View →Macroeconomic data released on November 2, 2026 ET.
Top Stories
A quick look at the five stories that shaped today's market sentiment. Explained with brief context highlighting why each story mattered today.
‘Feels like a recession’, says Bullock as cash rate hits 4.85pc
Reserve Bank of Australia governor Michele Bullock stated that many Australians may feel as though they are in a recession due to the central bank raising interest rates to 4.85%, the highest in 18 years. This decision, made by six of the nine monetary policy board members, marks the fifth increase this year. The rise is attributed to concerns over widespread inflation, which has intensified pressure on Treasurer Jim Chalmers to reduce government spending.
Source: Australian Financial Review
Canva revenue stuck in mud, confidential data shows; job cuts loom
Canva is facing potential staff layoffs as its leadership team reviews internal data showing a decline in active users and stagnant revenue growth. The company, valued at $US31 billion ($44.3 billion), reported an annualized revenue of approximately US$3.69 billion at the end of October, unchanged from earlier this year. Co-founder Mel Perkins expressed regret over the disruption caused by the layoffs, as the company seeks effective strategies to attract users and enhance profitability.
Source: Australian Financial Review
Chalmers must cut spending to solve inflation problem
The AFR View emphasizes the need for Treasurer Jim Chalmers and the expenditure review committee to pursue real savings in the upcoming MYEFO to avoid further interest rate hikes. The Reserve Bank of Australia has raised the cash rate to 4.85%, its fifth increase this year, following a period of lower rates compared to other countries. Governor Michele Bullock indicated that this rate rise would feel like a recession for many Australians due to the impact of inflation and stagnant wage growth.
Source: Australian Financial Review
This is the RBA’s cruellest rate rise. Australia is becoming K-shaped
The Reserve Bank's fifth rate increase this year is expected to disproportionately affect young families and small businesses, intensifying economic challenges. The article reflects on the atmosphere at Flemington Racecourse before the Melbourne Cup, contrasting the excitement of the event with the economic strain felt by many. The ongoing rate hikes signal a growing divide in the economy, as some sectors experience significant pain while others remain insulated.
Source: Australian Financial Review
RBA’s ugly outlook spells tough times for Australia’s economy
The Reserve Bank of Australia has updated its forecasts for economic growth, inflation, and unemployment, revealing a fragile economic outlook. The recent increase in the cash rate to 4.85% is accompanied by concerning data in the bank's quarterly Statement on Monetary Policy. Governor Michele Bullock acknowledged that many Australians may feel poorer, leading to perceptions of a recession, despite the bank not forecasting a technical recession for the overall economy.
Source: Australian Financial Review
Other Headlines
Australia raises rates to highest level since 2008 financial crisis
The RBA has finally acted. But we could be at a tipping point
Shell to sell Australian gas stake to Abu Dhabi’s XRG for $1.45bn
Chalmers, Bullock grapple with a home-grown debacle
China halts listings in bid to bolster struggling markets
Japan's Aisin develops new type of AI chip that cuts energy use 98%
Japan’s interest rates are rising. Will young people lose out?
Sydney house prices to drop 16pc in ‘largest downturn on record’: CBA
Thailand to raise tax on imported EVs to 35% as Chinese brands gain ground
CNBC's The China Connection newsletter: Nvidia's humanoid push relies on China-made robot hands
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