Stocks rallied with futures and the dollar weakened as optimism over a potential Federal Reserve rate cut revived risk sentiment and outweighed renewed US-China trade tensions. Asian shares rose 1.5%, the first gain in four days, and contracts for European and US stocks advanced after Fed Chair Jerome Powell’s concerns about a weakening labor market reinforced expectations for an October rate cut. The dollar weakened for a second day, sending Asian currencies higher, while Treasury two-year yields hovered near their lowest levels since 2022. Gold hit a new peak. Since the tariff-fueled selloff in April, global stocks have rebounded sharply on expectations of further monetary easing following the Fed’s September rate cut and optimism over artificial intelligence. That rally, however, faces fresh headwinds as trade tensions between the US and China resurface, with both sides stepping up rhetoric and signaling possible new restrictions on key technology.
Powell signaled the US central bank is on track to deliver another quarter-point interest-rate cut later this month, even as a government shutdown significantly reduces its read on the economy. Swap contracts are pricing in roughly 1.25 percentage points of rate cuts by the end of next year, from the current range of 4%-4.25%. While Powell’s remarks set the tone for markets, investors were also monitoring a series of trade-related developments. President Donald Trump’s comments that he might halt cooking-oil trade with China had pushed the S&P 500 down 0.2%. The dollar’s weakness and China boosting its currency defense by keeping the so-called yuan fix at below 7.1 amid the trade spat helped lift Asian currencies. The yen gained 0.4% against the dollar to 151.21. Meanwhile, US Trade Representative Jamieson Greer predicted that heightened tensions with China over export controls would ease, following talks between representatives of the two countries. Trump, too, sounded cautiously optimistic that a positive outcome could be reached. Elsewhere, the European Union is considering forcing Chinese firms to hand over technology to European companies if they want to operate locally, in an aggressive new push to make the bloc’s industry more competitive. In Japan, the country’s first sale of government bonds since the ruling political coalition crumbled drew demand that was stronger than the 12-month average as higher yields attracted investors. Amid the political uncertainty, the heads of Japan’s main opposition parties are expected to discuss Wednesday whether they can close policy gaps and pick a candidate of their own for the nation’s premiership. US After Hours PZZA +12.4% on Reuters report APO making another attempt to acquire PZZA; XRAY +6.7% as SEC concludes investigation; VERI +25.5% on guidance and VDR contract wins.
Nikkei +1.80% Hang Seng +1.58% CSI +0.75% Shanghai +0.57% Shenzen +1.01%
Eur$ 1.1622 CNH 7.1306 CNY 7.1270 JPY 151.25 GBP 1.3348 CHF 0.8000 RUB 80.0000 TRY 41.8348 WTI$ 58.58 -0.20% Gold 4,189 +1.12% BTC 112,4752 -0.52% ETH 4,119 -0.02%
S&P +0.38% Nasdaq +0.53% EuroStoxx +1.24% FTSE +0.44% Dax +0.44% SMI +0.56%
Macro :
- EU Leaders to Call for Prioritizing Industry at Climate Debate
- Fed’s Collins Says It’s Prudent to Cut Rates a Bit More in 2025
- Gold Surge Rhyming With Prior Peaks Sends Warning: Macro View
- Most German Firms Remain Very Optimistic About China, Survey Says
- Data-Center Growth Could Spur 21-35 GW of New EU Solar
Keep an eye on :
- AMZN US : Amazon Plans to Cut as Much as 15% of HR Staff, Fortune Says
- AMG NA : AMG Signs Lithium Supply Deal With Beijing Easpring, AMG Critical Materials, Beijing Easpring Partner on Battery-grade Lithium Hydroxide Monohydrate Supply in Europe
- AAPL US : Apple to Build Home Hub and Robot in Vietnam in Pivot From China
- ASML NA : ASML 3Q Bookings Beats Estimates, ASML looks to calm fears over 2026 growth as it warns of China sales decline
- NDA GY : Salzgitter Offers €500m Bonds Exchangeable for Aurubis Shares
- BBN SW : Foxconn Bid for Stake in ZF Group’s Powertrain Unit Stalls: Rtrs
- BBD/B CN : *Bond Is Spending $1.7 Billion on Bombardier Jets and Services -- WSJ
- EN FP : Bouygues-Led Consortium Offers to Buy Most Altice SFR Assets
- 1211 HK : BYD +2.56%
- CME US : CME’s Middle East trading volumes jump as hedge funds rush to Dubai and Abu Dhabi
- COYA US : Coya Shares Rise as Greenlight Touts Firm in Investor Letter
- ENG SM : Enagas in Talks to Buy GIC stake in Terega: Reuters
- GFC FP : Gecina Maintains FY Recurrent Net per Share Forecast
- G IM : Generali Could Consider Bid for Gamalife’s Portugal Assets: MF
- HAVAS NA : Havas Organic Growth Beat Led by US Healthcare, Analysts Say
- HI US : Lone Star Said to Near Deal to Buy Plastics Maker Hillenbrand
- IVA FP : Inventiva SACA Sets $100 million Shares ATM Offering
- 6181 HK ; Laopu : +8.50% Folowing LVMH
- HLUNB DC : Lundbeck CEO Says Sales Are Growing Faster Than Expected: JP
- MC FP : LVMH 3Q Fashion & Leather Goods Organic Sales Beat Estimates
- MGM US : MGM Withdraws Commercial Casino License Application in New York
- MOWI NO : Mowi Prelim 3Q Ebit About EU112M, Est. EU111.8M
- NVAX US : Novavax Holder Shah Capital Calls for Sale of Company
- ORCL US : Oracle Co-CEOs Defend Massive Data-Center Expansion, Plan to Offer AI Ecosystem -- WSJ
- PZZA US : Apollo Makes Bid to Take Papa John’s Private at $64/Share: Rtrs
- 1913 HK : Prada +4.85% Following LVMH
- RXL FP : Rexel 3Q Sales Miss Estimates
- SZG GY : Salzgitter Offers €500m Bonds Exchangeable for Aurubis Shares
- SHEL LN : Timchenko Could Get Former Shell’s Stake in Salym: Kommersant
- STLA IM : Stellantis Jumps on $13 Billion US Investment Plan
- STLA IM : Canadian Jeep Plant At Risk in Stellantis’ $13 Billion US Plan
- STR AV : Strabag Holder Offers About 2.5m Shares, Terms Show
- STR AV : Strabag Holder Offers About 2.5m Shares, Terms Show
- TSLA US : Can Tesla stay a trillion dollar company on just two models? - FT
- TGS NO : TGS Wins Streamer Acquisition Pact in Africa for About 50 Days
- 2330 TT : TSMC to Provide Outlook for AI, Export Curbs: Preview (1)
- TKA AV : Telekom Austria 3Q Revenue Meets Estimates
- UBXN SW : Advent Declares Takeover Offer for U-blox as Successful
- ULVR LN : Unilever to Sell Kate Somerville Brand to Rare Beauty Brands
- VIS SM : Viscofan Says Hunterbrook’s Statements ‘Inaccurate, Misleading’
- VOW GY : Volkswagen, JSW Group Revive Talks for New India Auto JV: ET