Key Points

• Boeing 777X Delay: Boeing postponed the debut of its 777X jet to 2027, with potential charges up to $4 billion, deepening financial strain as certification hurdles persist and major customers push back fleet plans.
• Hitachi–OpenAI Partnership: Hitachi shares surged over 10% after announcing a global AI infrastructure partnership with OpenAI, boosting Japan’s Nikkei 225 amid broader optimism in tech-led growth.
• European Stocks Extend Rally: The Stoxx 600 hit fresh highs, led by bank and defense names, as Europe logged a fifth consecutive session of gains, supported by tech momentum and easing inflation in Switzerland.
• UBS Precious Metals Outlook: UBS raised gold and silver forecasts to $4,200 and $55 an ounce respectively, citing strong safe-haven demand, central bank buying, and supportive macro conditions.

Boeing’s 777X Faces New Delay, $4B Potential Charge

Boeing has postponed the commercial debut of its 777X widebody jet to early 2027, adding another year to a program already six years behind schedule. The delay could result in a non-cash charge of up to $4 billion, deepening financial strain on a program that has accumulated more than $11 billion in overruns. Certification bottlenecks with the FAA, rather than new technical flaws, are the main cause.

Launch customers Lufthansa and Emirates have adjusted fleet plans accordingly, while investors await clarity when Boeing reports earnings on Oct. 29.

Hitachi Jumps on OpenAI Deal, Nikkei Leads Asia Gains

Hitachi shares surged more than 10% after announcing a global AI infrastructure partnership with OpenAI, driving the Nikkei 225 up 1.85% to 45,769.50. Broader Asian markets were mixed, with Chinese and South Korean exchanges closed for holidays and Hong Kong’s Hang Seng slipping 0.54%. Japan’s unemployment rate edged up to 2.6% in August, while services PMI showed steady expansion despite weaker manufacturing.

In the U.S., all major indexes closed at record highs, led by Nvidia’s rally to a new peak, even as the government shutdown delayed key economic data releases including nonfarm payrolls.

European Stocks Extend Rally to Record Highs

European equities extended their winning streak Friday, with the Stoxx 600 up 0.4% after touching fresh record highs and on track for a weekly gain above 2%. London’s FTSE 100, Switzerland’s SMI, and Italy’s FTSE MIB each added around 0.5%, while Austria’s Raiffeisen Bank jumped 6.3% on reports the EU may lift sanctions on a Russian oligarch tied to its operations.

Tech momentum, fueled by OpenAI’s $500 billion valuation, supported broader market sentiment, while aerospace and defense stocks gained after new security initiatives. Investors continue to track the U.S. shutdown’s potential drag on global growth.

UBS Lifts Gold and Silver Forecasts on Strong Demand

UBS has once again raised its gold and silver price forecasts, citing resilient investor demand, macroeconomic uncertainty, and fiscal pressures as key drivers. The bank now projects gold to reach $4,200 an ounce and silver to climb as high as $55, up from previous targets of $3,800 and $47. Strategists flagged stronger central bank and ETF demand, alongside persistent dollar weakness and falling real rates, as supportive factors.

With silver showing greater upside volatility, UBS expects the gold-silver ratio to narrow toward 76x. Both metals have surged this year, with gold at record highs and silver up 60% year-to-date.

Conclusion

This week’s developments highlight a complex but opportunity-rich landscape for investors.

Boeing’s prolonged 777X delays underscore persistent risks in aerospace, while Hitachi’s partnership with OpenAI reflects the accelerating integration of AI into global infrastructure.

In Europe, equity markets continue to gain momentum, supported by both financial and defense sectors, even as macro risks remain.

Meanwhile, UBS’s upward revisions to gold and silver forecasts reinforce the strong bid for safe-haven assets amid geopolitical and fiscal uncertainty.

Together, these shifts point to a market environment where diversification and sector-specific positioning remain critical to capturing resilient growth.

Investment Insights

• Aerospace: Boeing’s 777X delay signals extended supply-chain and certification risks; investors should watch for ripple effects across airlines and aircraft lessors.
• Technology & AI: Hitachi’s OpenAI partnership highlights rising demand for AI infrastructure; opportunities lie in semiconductor, cloud, and data center ecosystems.
• European Equities: Record-breaking gains in the Stoxx 600 show resilience, but exposure to defense and financials may provide the best relative value amid geopolitical shifts.
• Precious Metals: UBS’s bullish outlook on gold and silver reinforces the role of safe-haven assets; rising central bank demand supports portfolio hedging strategies.

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