Trump’s push to bring Japanese-style kei cars to the U.S. could start an interesting market shifts in America’s oversized auto market by introducing cheap, ultra-compact EVs that dominate sales in Japan and China. These tiny vehicles, often priced around $17,000, have become Japan’s best-selling electric models despite their modest range, offering an affordability edge missing in the U.S. EV landscape. If approved, kei cars could undercut America’s SUV-and-truck obsession and appeal to cost-conscious urban drivers, especially as China’s BYD and Japanese brands race to electrify the segment. But Trump’s requirement that they be manufactured in the U.S. may slow rollout, inflate costs, and undermine the very affordability that makes kei cars attractive. The bigger question is whether American buyers that were long conditioned to equate size with safety and value are ready for a radically smaller future on the road.

EQUITY

Wall Street cheered as a grim ADP payroll reinforced Fed rate cut bets to 89%. Financials and energy led gains on lower-for-longer rate assumptions, while Microsoft fell 2.5% on AI sales quota reduction, though denied. Chipmaker Marvell shot up, among others, on strong AI guidance, contrasting with unprofitable tech firms like Snowflake that remain S&P 500 ineligible due to GAAP earnings rules.

GOLD

Gold shot up to a six-week high around $4,240 before dipping, driven by enduring bets of a rate cut following U.S. private-sector hiring report. Investors are positioning themselves against economic slowdown and policy uncertainty ahead of Chair Powell’s term expiration. Central banks added 53 tonnes in October alone, with more prominent volume in the silver market.

OIL

Crude oil prices stayed relatively steady even with Ukrainian strikes on Russian oil infrastructure continuing and U.S.-Russia peace talks stalled. The Druzhba pipeline was hit in its fifth such attack, but flows to Hungary and Slovakia remained unaffected. Rising U.S. inventories and weak global demand reinforce an oversupplied outlook that prompted Fitch to slash its 2025–2027 price projection even with geopolitical tensions adding a risk premium.

CURRENCY

The U.S. dollar hovered near a five-week low, while the euro hit a seven-week high, yen stabilised, and the Indian rupee hit a record low. Risk assets rallied, with equities and Bitcoin gaining on the “soft landing through easing” narrative, though dollar debasement trade slow. Central banks from Beijing to Tokyo showed discomfort with rapid FX moves, while markets braced for pivotal policy decisions in the U.S., India, and Europe.