Dominating the markets this morning are the glimmers of understanding between the US and China in trade, considered crucial at a systemic level, as investors prepare to face a busy week of events: starting with new US quarterly reports, including Netflix and Tesla, to a fact on theUS inflation which had remained in the drawer due to the shutdown still in progress for another, to a high-level meeting in ChinaIn the Middle East, the ceasefire between Hamas and Gaza, as well as the delivery of humanitarian aid, are intermittent, while deaths continue to be recorded.
In Europe, special attention is still being paid to the France, with futures indicating a decline this morning after S&P also cut its sovereign rating to A+ from AA-, citing "high" budget uncertainty. France has lost its double-A rating from two of the three major credit rating agencies in just over a month, potentially forcing some funds with extremely stringent investment criteria to sell the country's bonds.
The US and China square off on trade: Trump sends reassuring messages.
Sentiment in international markets is improving this morning after President Donald Trump said yesterday Trump he tried to ease trade tensions with China, which is expected to lead to a new round of talks this week between Treasury Secretary Scott Bessent and Deputy Premier He Lifeng, to prevent an escalation that would have systemic consequences, according to analysts.
The United States has threatened to significantly increase the duties by November 1st due to export controls of Rare lands on the part of China, but yesterday evening, questioned on the subject by Fox News Trump said the tax "is not sustainable," although "it could hold." The United States "will find an agreement" with China, he added. Bessent also had a "frank and detailed" conversation with He and reiterated his intention to meet in person next week.
Wall Street awaits new key quarterly results this week
Wall Street traders will focus on a new round of third-quarter data, after major banks started the season with strong performances. In addition to the streaming giant, Netflix and to the electric vehicle manufacturer Tesla, among other companies that will report financial results next week include consumer goods companies Procter & Gamble and Coca-Cola beyond the aerospace and defense giant RTX and to the tech giant IBM.
Corporate results and executive comments are closely followed by investors because they also provide insight into the economy, given that the US government has blocked the publication of economic data since October 1st, including monthly employment data. On the data front, the US government has announced that will publish the consumer price index on Friday of September which was on the agenda last October 15th. The data is particularly followed by the Fed which will decide on the trend of rates at its meeting scheduled for 28 29 and OctoberExpectations are for a rate cut of a quarter of a point.
Wall Street closed higher on Friday After regional banks' quarterly results eased credit risk concerns that had been triggered during Thursday's session, the S&P 500 closed up 0,53%, the Nasdaq up 0,52%, and the Dow up 0,52%.
Asia-Pacific stocks rise, led by Tokyo and Seoul to new records
The easing of trade tensions between USA and China, but also between USA and India, pushed all major stock markets in Asia Pacific higher, some even to record highs.
The MSCI Asian stock index jumped 1,7% after two weeks of decline, led by Japan which seems to have found a political truce. The Nikkei of Tokyo jumped nearly 3% to an all-time high on expectations that Sanae Takaichi, supporter of a expansionary fiscal policy, be elected next Prime Minister of JapanThe LDP and the minority Japan Innovation Party are expected to sign a governing agreement in the next few hours.
The is little changed at $4.270 an ounce, down 1,7% on Friday.
In China, leaders will gather in Beijing for a four-day meeting, known as Fourth Plenum, With analysts expecting further measures to prolong China's strongest stock rally in eight years and support the yuan, a detailed plan will be released only in March next year. Investors will be closely monitoring the post-meeting report for any policy signals ahead of a possible meeting between the Chinese president and the central bank. Xi Jinping and Trump.
Le Chinese stocks gained ground as investors looked beyond data showing a slowdown in economic growth at the weakest pace in a year. The Hang Seng Index Hong Kong earns 2,4%, the'Hang Seng Tech the 3,2%. Aliababa salt by 5%. Semiconductor manufacturing the 4% Baidu of 3,5%. The CSI 300 index of stock markets Shanghai and Shenzhen is up 0,7%. China records a third quarter GDP up 4,8% year-on-year, slowing from 5,2% in April-June due to trade tensions with the USIn the first nine months of the year, the Mandarin economy grew by +5,2%, remaining in line with the target for the whole of 2025 of a GDP increase of "around +5%". retail sales rose by +3% annually in September, down from +3,4% in August and up from the expected +2,9%, but fell to their lowest levels since November 2024, confirming stagnant consumption and the risks of deflation. Furthermore, industrial production It grew by 6,5% annually, compared to +5,2% in August and the +5,0% estimated the day before. Fixed asset investments, however, slipped to -0,50% in the first nine months of the year, reversing the +0,50% from January to August. Finally, unemployment in September fell to 5,2% in urban areas from 5,3% in August.
The bag of Alone is up 1,5%, on track for a record close. The BSE Sensex index Mumbai, opened in positive territory, +0,5% and is heading towards its fourth consecutive session of growth on expectations of progress in trade negotiations between Washington and New Delhi. After imposing 50% tariffs on India and criticizing the country for buying oil from Russia, US President Donald Trump has softened his rhetoric in recent weeks and has spoken with Indian Prime Minister Narendra Modi at least twice. The dollar remained unchanged, while oil fell after posting its third weekly decline.
European stock markets see a higher opening. Keep an eye on France and Italian government bonds.
European stock markets are expected to open higher: Euro Stoxx 50 Future Dec 2025 at +0,81%.
FranceFrench government bond futures fell after S&P Global Ratings downgraded France from AA- to A+, saying the country's fiscal uncertainty was "elevated."
ItalyFrom today until Friday, October 24th (until 13 p.m.), barring early closure, the BTP Valore returns, the government bond reserved exclusively for retail investors. It has a 7-year maturity, increasing quarterly coupons over time according to a "step-up" mechanism (3+2+2 years), and an additional final premium of 0,8%. The coupons, increasing in the three steps, are as follows: 2,60%; 3,10%; 4,00%.
Kering has sold its beauty division to L'Oreal as part of a long-term strategic alliance, with CEO Luca de Meo aiming to revive the fortunes of the French luxury giant.
StellantisCEO Antonio Filosa is meeting with Italian trade unions in Turin this afternoon.
Azimuth Azimut is close to acquiring an asset management company in one of the Latin American countries where the Italian group already has a presence, namely Chile, Brazil, and Mexico. CEO Pietro Giuliani stated this in an interview. Giuliani continued, Azimut has also identified a further opportunity to enter a new Asian country, with a transaction that could close by the end of 2026.
