News

Agricultural Commodities Updates: Coffee Rises by 4.32%: Top commodity gainers are Coffee (4.32%), Sugar (1.62%) and Canola (1.19%). Biggest losers are Rubber (-1.22%), Rapeseed (-0.92%) and Palm Oil (-0.80%).

Metals Commodities Updates: Silicon Drops by 3.24%: Top commodity losers are Silicon (-3.24%), Iron Ore CNY (-3.18%) and Copper (-2.56%). Gains are led by Gold (0.43%).

Energy Commodities Updates: Ethanol Falls by 2.84%: Top commodity losers are Ethanol (-2.84%), Heating Oil (-2.25%), Natural gas (-2.05%), Brent Crude Oil (-1.51%) and Crude Oil WTI (-1.39%). Gains are led by Natural Gas UK GBP (1.47%), Germany Natural Gas THE (1.06%) and Natural Gas EU Dutch TTF (0.93%).

US 10-Year Yield Extends Downturn: The yield on the US 10-year Treasury note fell past 4.04% on Tuesday, approaching April-lows after Fed Chair Powell’s remarks highlighting a weakening labor market, which reinforced expectations for an imminent rate cut and eased discount-rate pressures on bonds. Investors also weighed ongoing US–China trade frictions, including China’s sanctions on US-linked units of South Korea’s Hanwha Ocean and the prospect of a meeting between President Trump and Xi Jinping, which could provide an off-ramp to escalating tensions. Meanwhile, the ongoing federal government shutdown has limited the release of key economic data, reducing immediate visibility on domestic growth and keeping yields subdued as markets reassess the near-term policy outlook.

US Stocks Recover in Afternoon Trading: US stocks pared early losses on Tuesday afternoon, with the S&P 500 up about 0.3% and the Dow Jones rising over 340 points while the Nasdaq cut losses, as policy signals and earnings strength offset trade-driven volatility. The lift followed Fed Chair Powell’s acknowledgement of weakening labor-market prospects, reinforcing bets on a rate cut later this month. Meanwhile, confirmation that President Trump still plans to meet Xi Jinping, which dulled fears of an immediate trade rupture after China’s recent sanctions on US-linked shipping assets, also drove markets back to risk assets. At the same time, strong bank results anchored the rebound as Citigroup jumped over 4.5% after beating revenue across all five business lines and Wells Fargo rallied nearly 7% after lifting a key profitability metric and outlining a post-regulatory growth target. However, Goldman slipped about 1.5% despite record Q3 revenue and warned of another round of job cuts to curb costs and seize AI opportunities.

DAX Ends on Lower Note: Germany's DAX closed about 0.6% down at 24,232 on Tuesday, a near two-week low, as traders weighed revived US-China trade tensions and the prolonged US shutdown, while also assessing corporate updates. In France, Prime Minister Sébastien Lecornu announced plans to suspend the pension reform this fall, partially acceding to the demands of the Socialists, whose support is crucial for the government’s survival. On the corporate front, German parts maker Continental underperformed with an over 4% decline, tracking losses in French peer Michelin after the latter cut its guidance. Siemens followed closely, down 3.2%, after Morgan Stanley downgraded the stock to "equal-weight" from "overweight", citing a weak recovery in its Digital Industries arm and rising competition in China. Defense names such as Renk, Hensoldt and Rheinmetall were also among the worst performers, down 3.9%, 3.6% and 2.2%, respectively. On the upside, Heidelberg Materials (+2.1%) stood out on Gaza reconstruction plans.

FTSE 100 Little Changed on Tuesday: The FTSE 100 ended little changed on Tuesday as gains in defensive stocks offset weakness in miners and energy shares amid renewed trade tensions. Sentiment remained fragile after China imposed restrictions on US units of South Korea’s Hanwha Ocean, heightening fears of further escalation with Washington. EasyJet was the standout performer, surging more than 8% following reports that Italy’s Mediterranean Shipping Co may be considering a takeover bid. Among miners, Anglo American slid over 3%, Antofagasta more than 2%, and Glencore 1.5%, while Rio Tinto was flat after reporting a 10% year-on-year rise in third-quarter copper output. BP lost about 1.7% after warning of up to $500 million in impairment charges for the third quarter ahead of its November earnings release. Meanwhile, labor market data showed unemployment at 4.8%, the highest since May 2021, reinforcing expectations for Bank of England rate cuts.

Canada 10-Year Bond Yield Falls Near May-Lows: The yield on the 10-year Canadian government bond fell to around 3.16% in October, near its May-lows, amid a mix of lower US long yields, a growing market bet on further Bank of Canada easing, and weaker domestic growth signals. US long yields plunged as markets priced a larger growth hit and a higher probability of Fed easing amid the government shutdown and a quieter economic data calendar, which boosted demand for long-dated Treasuries and pulled Canadian yields down. At the same time Canadian money markets moved to price a slower path for Bank of Canada policy, so expected short rates fell and the whole Canadian curve repriced lower. Domestic softening in activity and easing inflation signals gave investors licence to extend duration, while a weaker oil complex and fresh IEA warnings of a sizable supply surplus cut Canada’s terms-of-trade outlook and reduced a major source of government revenue.

European Stocks Fall on Tuesday: European stocks declined on Tuesday, with the Stoxx 50 and Stoxx 600 both down around 0.3%, as escalating US-China trade tensions weighed on sentiment. Risk-sensitive sectors such as autos and miners led losses after Beijing sanctioned US units of a South Korean shipping company and warned of further retaliation, heightening fears of renewed trade disruptions. Defensive sectors, including telecom, real estate, and utilities, outperformed as investors sought safety. Among individual movers, Michelin tumbled 8.9% after the tiremaker issued a profit warning, citing sharply weaker demand in North America. In contrast, Ericsson surged 16% after the Swedish telecom group reported stronger-than-expected third-quarter results, driven by the sale of its call-routing business, Iconectiv, which boosted profit and cash flow. In France, political uncertainty added to market caution after PM Lecornu said he would move to suspend the controversial pension reform in an effort to preserve stability.

TSX Rebounds on Tuesday: The S&P/TSX Composite rose 0.5% to above the 30,000 mark on Tuesday, rebounding from Friday’s sharp downturn as miners, financials and tech led gains after a long weekend and after US-China trade tension that had triggered the selloff eased. Major mining equities Agnico Eagle, Wheaton Precious Metals, Barrick Mining and Franco-Nevada led the advance, surging between about 2% and 5% as gold kept reaching record highs amid safe-haven demand. Financials and techs also supported the index, with Brookfield up more than 3% and Constellation Software gaining over 2%. Initial optimism over US–China relations was tempered, however, after both countries began imposing reciprocal port fees on each other’s shipments, stoking concern of further escalation, and China moved to sanction five US subsidiaries of South Korea’s Hanwha Ocean.

IMF Sees Global Growth Slowing to 3.2% in 2025: The IMF projects global economic growth to slow to 3.2% in 2025 and 3.1% in 2026, down from 3.3% in 2024, as the world economy adjusts to an environment of rising protectionism and fragmentation, according to the latest World Economic Outlook (WEO). Although the 2025 forecast remains below pre-policy-shift levels, it is 0.4 percentage points higher than the April projection, reflecting a moderation in tariff escalations. By country, US growth is expected at 2.0% in 2025 and 2.1% in 2026, while China’s economy is projected to slow to 4.8% and 4.2%, respectively. The Euro Area is forecast to expand 1.2% in 2025 and 1.1% in 2026, the UK by 1.3% in both years, and Japan by 1.1% and 0.6%. Meanwhile, global inflation is expected to continue easing, though trends will vary across countries—remaining above target in the US, with risks tilted to the upside, while staying subdued elsewhere.

Baltic Dry Index Dips: The Baltic Exchange's dry bulk sea freight index, which tracks rates for vessels transporting dry commodities, slipped about 5.7% to 2,022 points on Tuesday, after a 10.7% jump in the prior session, pressured by the bigger-size segment. The capesize index, which typically transports 150,000-ton cargoes such as iron ore and coal, ended its three-day rally, plunging about 11.4% to 3,007 points, likely tracking lower iron ore prices amid easing supply concerns tied to new Chinese port fees. On the other hand, the panamax index, which usually carries 60,000-70,000 tons of coal or grain, rose by 0.5% to 1,815 points; and the supramax index increased 0.6% to 1,408 points.

US Futures Dip on Trade Fears, Earnings Kick Off: US stock futures fell on Tuesday, with S&P 500 and Nasdaq 100 contracts down more than 1% and Dow Jones futures slipping around 280 points, following a strong session the day before. Initial optimism over US–China trade relations faded as both countries began imposing new port fees on each other’s shipments, stoking concerns of further escalation. Also, China imposed sanctions on five of South Korea’s Hanwha Ocean’s US subsidiaries. Meanwhile, the earnings season got underway: JPMorgan traded near the flatline before the opening bell, after reporting slightly higher-than-expected provisions for credit losses at $3.4 billion. BlackRock fell 0.3% despite beating earnings and revenue estimates, Goldman Sachs declined 0.8% despite a revenue beat, and Johnson & Johnson was little changed after reporting higher-than-expected results and announcing it will separate its orthopedics business. On the other hand, Wells Fargo jumped 2.3% following a profit increase.

Canada 10Y Bond Yield Hits 22-week Low: Canada 10 Year Government Bond Yield decreased to 3.12%, the lowest since May 2025. Over the past 4 weeks, Canada 10Y Bond Yield gained 0.80 basis points, and in the last 12 months, it decreased 3.60 basis points.

Zinc Drops Amid Trade Tensions and Growing Chinese Supply: UK zinc futures fell below $2,940 per tonne in mid-October, their lowest level since September 26, pressured by renewed US-China trade tensions and prospects of rising output. Beijing announced it had begun collecting special port charges on US-linked vessels, a tit-for-tat response to President Trump’s threat of 100% tariffs on Chinese goods, alongside China’s tightening of rare earth export controls. Meanwhile, Chinese zinc producers—China being the world’s largest producer—are preparing to sell metal overseas, taking advantage of higher international prices. Concerns over global oversupply are also weighing on prices. The International Lead and Zinc Study Group reported that the global supply of refined lead is expected to exceed demand by 91,000 tonnes in 2025, with a slightly larger surplus of 102,000 tonnes in 2026. However, a sharp drop in inventories may help limit losses: LME zinc stocks have fallen from 230,000 tons in January to just 40,850 tons by October.

Germany’s 10-Year Bund Yield Falls to Near 3-Month Low: Germany’s 10-year Bund yield dropped below 2.6%, its lowest level since July 22, as renewed US-China trade tensions drove investors toward the safety of government bonds. Both countries imposed additional port fees on ocean shipping firms, following President Trump’s threat of 100% tariffs on Chinese goods and Beijing’s decision to tighten rare earth export controls. Investors also remained attentive to French political developments, with reappointed Prime Minister Sébastien Lecornu racing to present the 2026 budget bill to parliament before constitutional limits on reviewing the legislation expire. On the data front, German investor sentiment improved in October, but less than expected, reinforcing cautious market sentiment.

Iron Ore Futures Snap 3-Day Gain: Iron ore futures fell 2.6% to CNY 782 per ton on Tuesday, snapping a three-day rally and nearing a four-week low of CNY 780.5 from September 30, as supply concerns linked to new Chinese port fees eased. Earlier worries that the levies could disrupt trade flows subsided after China’s Ministry of Transport finalized the rules and clarified exemptions. The ministry said vessels with US ownership or operation that were built in China would be exempt from the new charges, easing fears of widespread congestion or shipment delays. The clarification reassured traders that much of the global shipping fleet would avoid the fees, given China’s large role in vessel construction. Forward freight agreements for the key Capesize 5TC route softened following the ministry’s announcement, reflecting reduced near-term risk premiums. Meanwhile, the latest data showed iron ore imports jumped 10.6% to a record 116.33 million metric tons, due to improving demand and higher prices.

Platinum Hits Near 12-Year High: Platinum hovered above $1,640 an ounce, approaching a 12-year high, supported by tight market fundamentals and escalating US-China trade tensions. Safe-haven demand was boosted as both the US and China plan to impose additional port fees on shipping companies starting Tuesday, while US Treasury Secretary Scott Besent said President Trump is still expected to meet Chinese President Xi Jinping in South Korea in late October. Meanwhile, markets largely bet on 25 basis point Fed rate cuts in October and December. On the fundamentals, platinum is regaining share in luxury jewelry as its price gap with gold narrows. Industrial demand remains firm in gasoline vehicle catalysts, oil refining, and chemicals. Supply-side pressures persist, with the market set for a third consecutive year of deficit. Mine output in 2025 is expected to fall 6% to 5.426 million ounces, while automotive catalyst recycling, projected to grow at a 4.7% CAGR through 2029, is insufficient to close the gap.

US Small Business Optimism Below Forecasts: The NFIB Small Business Optimism Index in the US fell for the first time in three months to 98.8 in September 2025 from 100.8 in August and well below forecasts of 100.5. The reading signalled a decline in optimism among small business owners, with supply chain disruptions and inflation emerging as the main concerns. 14% of owners reported that inflation was their single most important problem and 64% reported that supply chain disruptions were affecting their business to some degree. One bright spot was actual earnings changes, which increased to its highest level since December 2021. "While most owners evaluate their own business as currently healthy, they are having to manage rising inflationary pressures, slower sales expectations, and ongoing labor market challenges. Although uncertainty is high, small business owners remain resilient as they seek to better understand how policy changes will impact their operations", NFIB Chief Economist Bill Dunkelberg said.

Euro Weakens to 2-1/2-Month Low Amid French Budget Concerns: The euro slipped toward $1.15, hitting its weakest level since July 31, as investors closely watched political developments in France. Reappointed Prime Minister Sébastien Lecornu is rushing to present the 2026 budget bill to parliament before constitutional limits on reviewing the legislation expire. The plan, according to the Haut Conseil des Finances Publiques, aims to reduce the Eurozone’s largest deficit to between 4.7% and 5% of GDP, a modest improvement from this year’s 5.4%. Meanwhile, concerns over a potential US-China trade war resurfaced after both countries imposed additional port fees on ocean shipping firms. This follows President Trump’s threat of 100% tariffs on Chinese goods and Beijing’s decision to tighten rare earth export controls. On the data front, German investor sentiment improved in October, but less than expected, adding to cautious market sentiment.

South Africa Business Confidence Hits 6-Month High: SACCI: The South African Chamber of Commerce and Industry (SACCI) business confidence index rose to 121.1 in September 2025, the highest reading in six months, up from 120 in August. The increase was supported by an influx of overseas tourists, rising global gold and platinum prices, higher merchandise export volumes, increased new vehicle sales, and JSE share prices surpassing their medium-term trend. "In the short term, the financial climate supported business sentiment, while real economic activity was stable with some negatives. Over the year, both economic activity and the financial environment were stronger than a year ago.", SACCI said. Meanwhile, the chamber noted that economic activity was under pressure from tariff uncertainty, with AGOA and US trade agreement deadlines expiring amid limited progress on permanent arrangements.

France 10-Year OAT Yield Hits Lowest Since August: The yield on France’s 10-year OAT slid toward 3.4%, marking its lowest level since late August, as political uncertainty in France and rising US-China trade tensions weigh on markets. French President Emmanuel Macron rejected calls to resign, accusing opposition parties of stoking instability as his new government faces two no-confidence motions that could topple it by the end of the week. Authorities are racing to pass a compromise budget in the coming days to safeguard fiscal stability. On the international front, market anxiety is fueled by an unresolved US government shutdown and intensifying US-China trade frictions, with both countries set to impose additional port fees on shipping companies starting Tuesday. Meanwhile, the European Central Bank is maintaining a cautious stance, signaling that it is likely to keep policy on hold in the near term as it monitors growth and inflation dynamics across the eurozone.

South Africa Mining Output Unexpectedly Shrinks: Mining production in South Africa fell by 0.2% over a year ago in August 2025, following a 5.1% advance in the prior month and defying market estimates of a 1% rise. This marked the first decline in mining activity since April, largely on account of PGMs (-3%, contributing -0.9 percentage points); gold (-3.6%, contributing -0.4 percentage points); and manganese ore (-3.4%, contributing -0.3 percentage points). Conversely, the biggest increases were seen for diamonds (+29.6%); other metallic minerals (+19.1%) and coal (+4.1%). On a seasonally adjusted monthly basis, mining output decreased by 1.2% in August, after an upwardly revised 1.2% rise in the previous month. Seasonally adjusted mining production increased by 3.3% in the three months ended August 2025 compared with the previous three months.

South Africa Gold Output Accelerates Decline in August: Gold production in South Africa fell 3.6% year-on-year in August 2025, marking the second consecutive monthly decline and accelerating from a 0.4% drop in the previous month. The contraction shaved 0.4 percentage point off overall year-on-year growth in total mining output. On a seasonally adjusted basis, gold production also declined 3.6% in August, following a 0.9% fall in July.

US Heating Oil Futures Fall Toward 4-Month Low: US heating oil futures fell to $2.211 per gallon, approaching a four-month low, tracking broader declines in crude as ample global supply and renewed US-China trade tensions pressured energy markets. The International Energy Agency raised its global oil supply growth forecast to 3 million barrels per day this year and 2.4 million in 2026, citing higher OPEC+ output and strong production from the Americas, while cutting demand growth estimates to about 700,000 bpd in both years. The bearish outlook, coupled with renewed geopolitical friction and weaker risk sentiment, weighed on prices. Capping losses, the US Energy Information Administration projected distillate inventories would remain below average through 2026, pressured by strong exports, refinery closures, and significant stock draws earlier this year. Inventories fell by 17%, or about 22 million barrels, in the first half of 2025.

Eurozone Investor Morale at 5-Month Low: The ZEW Economic Expectations Index for the Euro Area declined to 22.7 points in October 2025, the lowest level in five months, down from 26.1 in September and well below forecasts of 30.2. The decline was mainly attributed to the ongoing budget dispute in France. Assessments of the current economic situation also weakened, falling 3 points to -31.8, signaling a further deterioration in sentiment.

Brent Crude Oil Falls to 5-Month Low: Brent crude oil futures fell 2% to below $62 a barrel on Tuesday, the lowest in five months, after the International Energy Agency’s market outlook reinforced expectations of a growing supply surplus. The IEA raised its forecast for global oil supply growth to 3 million barrels per day this year and 2.4 million in 2026, citing OPEC+ production hikes and strong output from the Americas. Meanwhile, it lowered demand growth estimates to around 700,000 bpd for both years. The agency warned that global inventories are likely to swell as large crude shipments reach key hubs, with stock builds already evident in China and the US. On Monday, OPEC said in its monthly report that global demand would grow by 1.3 million barrels a day this year and 1.4 million in 2026, striking a positive tone. Meanwhile, renewed US-China trade tensions and a risk-off mood in markets deepened selling pressure.

Oil Falls to 5-Month Low: WTI crude oil futures fell 2% to $58.3 a barrel on Tuesday, the lowest in five months, after the International Energy Agency’s market outlook reinforced expectations of a growing supply surplus. The IEA raised its forecast for global oil supply growth to 3 million barrels per day this year and 2.4 million in 2026, citing OPEC+ production hikes and strong output from the Americas. Meanwhile, it lowered demand growth estimates to around 700,000 bpd for both years. The agency warned that global inventories are likely to swell as large crude shipments reach key hubs, with stock builds already evident in China and the US. On Monday, OPEC said in its monthly report that global demand would grow by 1.3 million barrels a day this year and 1.4 million in 2026, striking a positive tone. Meanwhile, renewed US-China trade tensions and a risk-off mood in markets deepened selling pressure.

CAC 40 Slides on France Politics and Trade Tensions: The Paris CAC 40 fell 1.0% to around 7,850 on Tuesday, reversing slight gains from the previous session, as French political uncertainty and US-China tensions weighed on sentiment. French President Emmanuel Macron rejected calls to resign and criticized opponents, with his government facing two no-confidence motions that could topple it by the end of the week. Market concerns were further amplified by US-China trade risks, as both countries plan to impose additional port fees on shipping companies starting Tuesday. Michelin led losses with an 8.3% drop after lowering annual targets amid a worsening economic environment, now expecting operating income of €2.6–3.0 billion, down from over €3.4 billion. Stellantis fell 3.4% after Moody's placed its credit rating outlook on “negative” while keeping its Baa2 rating. Other notable decliners included Teleperformance (-2.7%), ArcelorMittal (-2.0%), and Kering (-1.4%).

Dollar Steadies Ahead of Powell Speech: The dollar index hovered around 99.3 on Tuesday, showing little direction as investors awaited remarks from Federal Reserve Chair Jerome Powell later in the session. His speech comes amid a prolonged US government shutdown that has limited the release of key economic data, prompting markets to look toward upcoming bank earnings for signals on the economy’s health. The Fed is widely expected to deliver another quarter-point rate cut this month following a similar move in September, with another reduction anticipated in December. Meanwhile, investors continued to track fast-evolving US-China trade developments ahead of a potential Trump-Xi meeting in South Korea later this month. In the latest escalation, China imposed restrictions on five US units of Hanwha Ocean in response to Washington’s probes into Chinese maritime, logistics, and shipbuilding sectors.

China Stocks Drop on Renewed Trade War Fears: The Shanghai Composite fell 0.62% to close at 3,865 while the Shenzhen Component dropped 2.54% to 12,895 on Tuesday, reversing gains from earlier in the session as renewed fears of a prolonged US-China trade conflict rattled markets. China announced restrictions on five US units of Hanwha Ocean in retaliation for Washington’s investigations into Chinese maritime, logistics, and shipbuilding sectors. Further heightening tensions, both nations began imposing additional port fees on ocean shipping firms, though Beijing exempted domestically built vessels. Still, President Donald Trump is expected to meet Chinese President Xi Jinping in South Korea later this month in an effort to ease hostilities. Technology, materials, and clean energy shares led the decline, with Eoptolink Technology, ZTE Corp, Zhongji Innolight, Contemporary Amperex, and China Northern Rare Earth sliding between 1.5% and 9%.

UK 10Y Bond Yield Hits 4-week Low: UK 10 Year Government Bond Yield decreased to 4.61%, the lowest since September 2025. Over the past 4 weeks, United Kingdom 10Y Bond Yield lost 2.92 basis points, and in the last 12 months, it increased 36.40 basis points.

China Car Sales Rise 14.9% in September: China's vehicle sales grew 14.9% year-on-year to a nine-month high of 3.226 million in September 2025, following a 16.4% rise in August, according to data from the China Association of Automobile Manufacturers (CAAM). Sales of new energy vehicles (NEVs) surged 24.6% year-on-year to 1.604 million units in September, accounting for 49.7% of all new car sales, marking the seventh consecutive monthly increase. In the first nine months of 2025, total vehicle sales climbed 12.9%, while NEV sales surged 34.9%. Recently, eight government departments, including the Ministry of Industry and Information Technology, set a target of approximately 32.3 million vehicle sales in 2025 — a year-on-year increase of around 3%. Sales of new energy vehicles (NEVs) are expected to reach about 15.5 million units, marking a year-on-year growth of approximately 20%. On a monthly basis, total car sales rose 12.9% in September, accelerating from a 10.1% rise in August.

Pound Hits Lowest Level Since August as Wage Growth Slows: The British pound fell below $1.33, hovering at its weakest level since August 1, after weaker wage growth data raised expectations that the Bank of England could continue cutting interest rates, albeit gradually. The latest UK jobs report showed regular pay growth eased to 4.7% in June–August 2025, down slightly from 4.8% in the previous three months and marking the weakest pace since March–May 2022. Other indicators suggest the labor market is stabilizing: the unemployment rate rose slightly to 4.8%, above forecasts of 4.7%, while September payrolls fell by 10,000, reversing a 10,000 gain in the previous month. Money markets are now pricing in almost nine basis points of Bank of England interest rate cuts by year-end, up from five basis points before the labor report.

Copper Tumbles as Trade War Fears Resurface: Copper futures slipped back below $5 per pound on Tuesday, giving up the prior session’s gains as renewed fears of a prolonged US-China trade conflict rattled global markets. China imposed restrictions on five US units of Hanwha Ocean in retaliation for Washington’s investigations into Chinese maritime, logistics, and shipbuilding sectors. Further stoking tensions, both the US and China began imposing additional port fees on ocean shipping firms, though Beijing granted exemptions for domestically built vessels. Still, US Treasury Secretary Bessent said Monday that President Trump remains on track to meet Chinese President Xi in South Korea later this month. Meanwhile, supply concerns persisted as mining disruptions in Chile and Indonesia continued to limit global output, with Chile’s Codelco reporting its lowest monthly production in more than two decades in August and Indonesia’s Grasberg mine still facing restrictions following last month’s fatal accident.

US Futures Slip on Renewed Trade Concerns: US stock futures fell on Tuesday, reversing gains from earlier in the session as the latest trade-related headlines reignited fears about US-China relations. China imposed restrictions on five US units of Hanwha Ocean in retaliation for Washington’s investigations into Chinese maritime, logistics, and shipbuilding industries. Those moves came after Wall Street rebounded sharply on Monday, when President Donald Trump struck a softer tone on China following last week’s threat of a 100% tariff on Chinese goods that wiped out about $2 trillion in market value. Megacap tech stocks led Monday’s rebound, with Tesla, Nvidia, and Broadcom rising between 2.8% and 9.9%, while quantum computing, clean energy, and rare earth shares also outperformed, including Rigetti Computing (25%), Oklo (16.2%), and MP Materials (21.2%). Investors now look ahead to quarterly earnings from major banks such as JPMorgan Chase and Goldman Sachs later in the day.

German Inflation Rate Confirmed at 2.4%: Germany’s consumer price inflation stood at 2.4% in September 2025, in line with flash estimates and up from 2.2% in August, marking the fastest pace so far this year. Inflation for goods accelerated slightly (1.4% vs 1.3% in August), though food prices moderated (2.1% vs 2.5%), despite notable increases in fruit (5.1%), sugar and confectionery (6.5%), and dairy products and eggs (3.6%). Energy prices continued to decline, though at a slower rate (-0.7% vs -2.4%), led by lower prices for heating oil (-2.2%) and electricity (-1.6%). In contrast, services inflation rose to 3.4% from 3.1%, driven by sharp increases in passenger transport (11.2%) and social services (8.2%). Core inflation—which excludes food and energy—edged up to 2.8% from 2.7%. On a monthly basis, consumer prices rose by 0.2%, following a 0.1% increase in August. The EU-harmonised inflation rate also accelerated to 2.4% year-on-year (up from 2.1%) and rose 0.2% month-on-month (vs 0.1%).

Palm Oil Falls for 3rd Session: Malaysian palm oil futures dropped below MYR 4,500 per tonne, down for a third session as a stronger ringgit weighed on sentiment. Meantime, Kuala Lumpur expects crude palm oil prices next year to range between MYR 3,900 and MYR 4,100, citing higher global supply and stronger output from rival oils. Industry data showed end-September stocks rose 7.2% from August to 2.36 million tonnes, the highest in almost two years. In India, the world’s largest palm oil buyer, October demand is projected to fall below 600,000 tonnes after a 16% fall in September. Losses were offset by signs of firm exports, with Malaysian shipments up between 9.9% to 19.4% in October 1-10, according to cargo surveyors. Data from the Malaysia Palm Oil Board signaled production fell slightly in September, the first monthly drop in three months. Globally, U.S. Treasury Secretary Scott Bessent said Washington is in talks with Beijing to ease trade tensions, with Trump still set to meet Xi in South Korea in late October.

Silver Near Record High: Silver hit fresh record highs above $53 per ounce on Tuesday before pulling back, as a historic short squeeze and tightening liquidity in London drove traders to scramble for physical supply globally. Lease rates in London soared more than 30% on Friday, pushing rollover costs for short positions to unsustainable levels. At the same time, surging demand from India in recent weeks further strained supply, following earlier shipments of silver to New York amid fears the metal could face US tariffs. On the geopolitical front, markets remained vulnerable to shifting US-China trade dynamics ahead of a potential Trump-Xi meeting in South Korea later this month. Meanwhile, expectations for another Federal Reserve quarter-point rate cut this month, followed by a likely move in December, continued to support precious metals.

Japan 10-Year Yield Falls Amid Political Uncertainty: Japan’s 10-year government bond yield slipped to around 1.67% in post-holiday trade on Tuesday, easing from over 17-year highs as rising political uncertainty spurred demand for safe-haven assets. On Friday, Japan’s Komeito party announced its withdrawal from the ruling coalition led by the Liberal Democratic Party, deepening doubts over Sanae Takaichi’s policy agenda and complicating her path to the premiership. Meanwhile, Finance Minister Katsunobu Kato said Japan’s current situation differs from the Abenomics era of aggressive stimulus, noting that inflation, rather than deflation, is now the main concern. Kato also cautioned against one-sided and rapid currency moves, stressing that exchange rates should remain stable and reflect economic fundamentals.

China, U.S. Impose Port Fees in Trade War Escalation: The U.S. and China will begin imposing additional port fees on ocean shipping firms on Tuesday, making maritime trade a new front in their ongoing trade war. Reuters said that China had started collecting the charges on U.S.-owned, operated, built, or flagged vessels, though Chinese-built ships are exempt. The U.S. plans to begin collecting similar fees on October 14. Analysts expect China-owned container carrier COSCO to be the most affected, potentially bearing nearly half of the sector’s projected USD 3.2 billion in fees for 2026. Last week, Beijing announced it would levy its own port fees on U.S.-linked vessels starting the same day. In a related move, China’s Ministry of Commerce Tuesday threatened further retaliation against U.S. curbs on its shipping sector after sanctioning five American entities of the South Korean shipbuilder Hanwha Ocean.

Gold Sets New Record Peak: Gold prices climbed as high as $4,179 per ounce on Tuesday before trimming most gains to trade near flat, as investors increased safe-haven purchases amid escalating US-China trade tensions and growing expectations of US interest rate cuts. China threatens more retaliation after sanctioning five US units of South Korean shipbuilder Hanwha Ocean. This comes after US President Trump threatened to impose additional 100% tariffs on Chinese imports in response to Beijing’s move to tighten export controls on rare earths. Market anxiety also lingered over the prolonged US government shutdown, which Treasury Secretary Scott Bessent said is beginning to affect the economy. Meanwhile, investors are now awaiting remarks from Fed Chair Jerome Powell at the NABE annual meeting later today, hoping to gain insights on the US central bank’s rate-cut path. Traders are currently pricing in an almost certain 25-bps rate cut in October, with another similar reduction expected in December.

France Targets Deficit Cut to 4.7% by 2026 in New Budget Plan: French Prime Minister Sebastien Lecornu’s government is set to unveil a budget on Tuesday aimed at cutting the deficit to 4.7% by the end of 2026, La Tribune reported Monday. The plan seeks total savings of EUR 31 billion through EUR 17 billion in spending cuts and EUR 14 billion in additional revenue. Among key measures, the budget reportedly includes a new tax on holding companies used by wealthy individuals. It also stipulates that pensions and social benefits will not rise in line with inflation, reflecting efforts to rein in public spending while boosting fiscal discipline. Lecornu, who resigned last week after just 27 days in office before being renominated by Macron, is the president’s fifth prime minister in five years. He now faces two no-confidence votes and uncertain support to stay in power.

Trump on Track to Meet Xi in South Korea: US President Donald Trump remains on track to meet Chinese leader Xi Jinping in South Korea in late October, as the two sides work to de-escalate tensions over tariff threats and export controls, US Treasury Secretary Scott Bessent said on Monday. Bessent noted that there had been substantial communication between the two sides over the weekend, with additional meetings expected. “We have substantially de-escalated,” Bessent said in an interview with Fox Business Network, as reported by Reuters. “President Trump said that the tariffs would not go into effect until November 1. He will be meeting with Party Chair Xi in Korea. I believe that meeting will still be on.” Trump and Xi had originally planned to meet during the Asia-Pacific Economic Cooperation (APEC) summit, which is being hosted by South Korea in late October.