European Market Open: Positive sentiment after Trump pours cold water on recent US-China tensions

APAC stocks were mixed following the rebound on Wall St; Japan underperformed on return from holiday/reacted to the ruling coalition split.China's MOFCOM announced that it is taking countermeasures against five US-linked firms; said the US cannot have talks while threatening new restrictions.European equity futures indicate a mildly lower cash market open with Euro Stoxx 50 futures down 0.2% after the cash market closed with gains of 0.7% on Monday.DXY is a touch softer, antipodeans lag, JPY picked up as the risk sentiment soured, EUR/USD is on the rise and eyeing 1.16.French PM Lecornu's government is to present a budget aiming to reduce the deficit to 4.7% by end-2026, according to La Tribune.Looking ahead, highlights include UK Unemployment/Wages (Aug), German ZEW (Oct), US NFIB (Sep), IEA OMR, Fed Discount Rate Minutes, ECB’s Cipollone & Villeroy, BoE’s Bailey & Taylor, Fed’s Powell, Waller, Collins & Bowman, BoC’s Rogers, RBA’s Hunter & Hauser, Supply from Netherlands, Italy & GermanyEarnings from BlackRock, JPMorgan, Goldman Sachs, Citi, Wells Fargo, Johnson & Johnson, Bellway & LVMH.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

US President Trump announced on Friday that the US is to impose a tariff of 100% on China beginning on November 1st, which will be over and above any tariffs that they are currently paying, while US export controls on critical software will also start on November 1st.US President Trump posted on Sunday, “Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!”APAC stocks began the week in the red as the region reacted to last Friday's Trump tariff threats and the subsequent Wall St sell-off, although US equity futures rebounded due to the softer tone from Trump over the weekend, while Japanese markets were shut for a holiday.European equity futures indicate a positive cash market open with Euro Stoxx 50 futures up 0.3% after the cash market closed with losses of 1.7% on Friday.US BLS said it will publish the September CPI report on Friday, 24th October 2025, at 08:30EDT/13:30BST.Looking ahead, highlights include German WPI (Sep), OPEC MOMR, Speakers including BoE’s Mann, Fed’s Paulson & RBA’s Hauser. Holidays: US Columbus Day (US bond market will be closed) & Canadian Thanksgiving.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

China reportedly launched a customs crackdown on NVIDIA (NVDA) AI chips, according to FT; US President Trump said maybe they will have to stop importing massive amounts from China.China's Transport Ministry announces plans to impose special port fees on US vessels; fees effective from 14th October.BLS is preparing to release a September US CPI report despite the shutdown, according to the NYT. Bloomberg sources suggested staff have been recalled for the preparation of the publication by the end of the month.European bourses are mixed and now generally hold a negative bias, US equity futures are slightly higher.DXY eases after four days of gains whilst JPY sees volatility on the 26-year-old coalition collapse.USTs gain whilst OATs lead, awaiting the French PM announcement.WTI/Brent are on the backfoot as the Gaza ceasefire plan; XAU is marginally higher.Looking ahead, Canadian Employment Report (Sep), US Uni. of Michigan Prelim. (Oct), Chinese M2/New Yuan Loans (Sep), Speakers including Fed’s Daly, Goolsbee & Musalem.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

APAC stocks were mostly lower following the negative handover from Wall Street.China reportedly launched a customs crackdown on NVIDIA (NVDA) AI chips, according to FT; US President Trump said maybe they will have to stop importing massive amounts from China.BLS is preparing to release a September US CPI report despite the shutdown, according to the NYT. Bloomberg sources suggested staff have been recalled for the preparation of the publication by the end of the month.Japanese Finance Minister Kato said they are recently seeing one-sided, rapid moves, and it is important for currencies to move in a stable manner reflecting fundamentals.European equity futures indicate an uneventful/subdued cash market open with Euro Stoxx 50 futures -0.1% after the cash market closed with losses of 0.4% on Thursday.Looking ahead, highlights include Norwegian CPI (Aug), Canadian Employment Report (Sep), US Uni. of Michigan Prelim. (Oct), Chinese M2/New Yuan Loans (Sep), Speakers including Fed’s Daly, Goolsbee & Musalem.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

China’s government announced export controls on rare earth materials.Hamas-Israel agreed to a Gaza ceasefire deal; conflicting reports whether the ceasefire is in effect, though the Israel Foreign Minister confirmed that it is.European bourses are mixed whilst US equity futures trade around the unchanged mark.DXY grinds higher amid continued NZD losses and a heavy GBP.OATs outperform as the odds of fresh legislative elections diminish, USTs await Fed speak.Crude benchmarks slightly higher despite Gaza ceasefire deal, XAU takes a breather.Looking ahead, New Zealand Manufacturing PMI, ECB Minutes (Sep), Eurogroup Meeting, Banxico Minutes, Speakers including, ECB’s Lane, BoC’s Rogers, Fed Chair Powell, Bowman, Barr & Kashkari, Supply from US, Earnings from Delta Air & PepsiCo.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

APAC stocks were predominantly higher following the tech rebound stateside, where the S&P 500 and NDX notched fresh record levels.Participants were encouraged by an agreement on the first phase of a Gaza ceasefire deal, and with Chinese traders returning from the National Day Golden Week holiday.Israel's Channel 14 reported the Israel-Hamas ceasefire will come into effect today at 12:00 noon (10:00BST/05:00EDT), according to Al Arabiya.FOMC Minutes stated participants judged that a cautious approach to future policy was warranted, while a majority of participants emphasised upside risk to their outlooks for inflation – no notable reaction seen in markets on the release.China’s government announced export controls on rare earth materials.Looking ahead, highlights include German Trade Balance (Aug), Atlanta Fed GDP, New Zealand Manufacturing PMI, (Suspended: US Jobless Claims (4 Oct w/e), Wholesale Sales (Aug), ECB Minutes (Sep), Eurogroup Meeting, Banxico Minutes, Speakers including BoE’s Mann, ECB’s Lane, BoC’s Rogers, Fed Chair Powell, Bowman, Barr & Kashkari, Supply from US, Earnings from Delta Air & PepsiCoRead the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

EU sees new US trade demands hollowing out deal struck by US President Trump, according to Bloomberg citing sources.European bourses are broadly firmer but with ASML (-1.7%) weighing on the AEX; US equity futures are modestly higher.USD continues to rally, boosted by a weak JPY and NZD; the Kiwi is the clear underperformer after the RBNZ delivered a jumbo 50bps cut and left the door open for more rate reductions.Global paper moves higher, OATs outperform, awaiting French PM Lecornu later.XAU topped the USD 4,000/oz mark, crude is continuing to rebound as China is set to re-enter the market tomorrow.Looking ahead, NBP Policy Announcements, FOMC Minutes (Sep), Speakers including BoE’s Pill, ECB’s Elderson & Lagarde, Fed’s Musalem, Barr, Goolsbee & Kashkari, NVIDIA CEO Huang, French PM Lecornu, Supply from US.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

APAC stocks trade mixed with demand hampered following the negative handover from the US; European futures flat.RBNZ cut rates by 50bps and kept the door open to further rate cuts.US President Trump said a lot of things will be eliminated due to the shutdown, and he will tell us about the eliminated jobs in four or five days.USD remains on the front foot, NZD lags post-RBNZ, JPY digests soft real cash earnings data.Spot gold continued its advances, in which spot prices climbed above the USD 4,000/oz level.Looking ahead, highlights include German Industrial Output (Aug), Swedish CPIF Flash (Sep), NBP Policy Announcements, FOMC Minutes (Sep), BoE’s Pill, ECB’s Elderson & Lagarde, Fed’s Musalem, Barr, Goolsbee & Kashkari, Supply from UK, Germany & US.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

Democrat and Republican bills to end the US government shutdown failed to secure sufficient votes for passage in the Senate, as expected.Senior Hamas official Mahmoud Al-Mardaw said "President Trump's plan is mainly an Israeli plan", but emphasises that Hamas wants to end the war.European bourses are choppy, trading on either side of the unchanged mark; US equity futures are flat/lower.USD once again on the front foot despite ongoing impasse on Capitol Hill; Kiwi lags awaiting the RBNZ.Bearish trade across global paper, except for JGBs which are marginally firmer following supply.Gold prints fresh ATHs near USD 4,000/oz; crude subdued, eyeing geopolitical updates. On supply, Russian Deputy PM Novak says OPEC+ nations did not discuss increasing quotas by more than 137k BPD in November.Looking ahead, NY Fed SCE, Atlanta Fed GDP, Canadian Trade Balance (Aug), Ivey PMI (Sep), EIA STEO, Speakers including Fed’s Bostic, Bowman, Miran, Kashkari, ECB’s Lagarde & Nagel, Supply from the US, Earnings from McCormick & Company.Suspended Releases: US International Trade, Consumer Credit.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk

APAC stocks traded mixed despite the tech-led advances on Wall St, with several holiday closures, Japanese stocks rallied again as the post-LDP election euphoria persisted.Democrat and Republican bills to end the US government shutdown failed to secure sufficient votes for passage in the Senate, as expected.European equity futures indicate an uneventful cash market open with Euro Stoxx 50 future flat after the cash market closed with losses of 0.4% on Monday.DXY held onto yesterday's gains, which were triggered by JPY and EUR selling. USD/JPY remains above 150.French President Macron said he has asked outgoing PM Lecornu to hold final talks with political partners to stabilise the country.Looking ahead, highlights include German Industrial Orders (Aug), US RCM/TIPP Economic Optimism, NY Fed SCE, Atlanta Fed GDP, Canadian Trade Balance (Aug), Ivey PMI (Sep), (Suspended Releases: US International Trade, Consumer Credit), EIA STEO, Fed’s Bostic, Bowman, Miran, Kashkari, ECB’s Lagarde & Nagel, Supply from UK, Germany & US.Read the full report covering Equities, Forex, Fixed Income, Commodites and more on Newsquawk