Stocks Rise With Futures As Trade Tensions Ease: Markets Wrap

Trump listed rare earths, fentanyl and soybeans as the US’s top issues with China just before the two sides return to the negotiating table and as a fragile trade truce nears expiration.

Bessent virtually met with He on Friday, discussions that Chinese state media described as a constructive exchange of views.

The moves signaled an effort by Washington to calm fears of a full-blown trade war with China that could have a seismic effect on the global economy.

“There’s a prevailing belief that US–China trade headlines will remain skewed toward a positive outcome,” Chris Weston, head of research at Pepperstone Group, wrote in a note to clients.

From the delayed US inflation report for September, to a high-level party meeting in China and a busy week of earnings — including Netflix Inc. and Tesla Inc. — it’s a packed week for investors. September’s consumer price index, originally set for Oct. 15, will now come on Friday.

On France, S&P Global Ratings downgraded the country to A+ from AA-, saying the nation’s budget uncertainty was “elevated.” France has now lost its double-A rating at two of the three major credit assessors in little more than a month, potentially forcing some funds with ultra-strict investment criteria to sell the country’s bonds.

Meanwhile, tension in the Middle East is ratcheting up again. Israel launched strikes against Hamas in Gaza and reportedly suspended all aid shipments on Sunday after blaming Hamas for a lethal Palestinian ambush that left two soldiers dead.

Corporate News:

• Kering SA agreed to sell its beauty division to L’Oreal SA as part of a long-term strategic alliance, with Chief Executive Luca de Meo seeking to turn around the French luxury giant’s fortunes.
• Holcim Ltd. agreed to buy Xella, a European walling systems company, in a €1.85 billion ($2.2 billion) deal, as it expands its building solutions business following the spin off of its North American unit.
• Apple Inc.’s latest generation of iPhones is off to a faster start than usual, with its most basic model surging in popularity.
• Volkswagen AG Chief Executive Officer Oliver Blume faces a significant reduction in remuneration after ending his additional role as head of Porsche AG, according to Süddeutsche Zeitung.
• Sany Heavy Industry Co. started taking investor orders to raise as much as HK$12.4 billion ($1.6 billion) in a Hong Kong listing, joining a flood of Chinese companies seeking to capitalize on the Asian financial hub’s hot market.
• Activist investor Jana Partners has built a stake in Cooper Cos. and plans to push for strategic alternatives, according to the Wall Street Journal.

Some of the main moves in markets:

Stocks

• The Stoxx Europe 600 rose 0.6% as of 8:13 a.m. London time
• S&P 500 futures rose 0.4%
• Nasdaq 100 futures rose 0.5%
• Futures on the Dow Jones Industrial Average rose 0.4%
• The MSCI Asia Pacific Index rose 1.9%
• The MSCI Emerging Markets Index rose 1.5%

Currencies

• The Bloomberg Dollar Spot Index was little changed
• The euro was little changed at $1.1659
• The Japanese yen fell 0.1% to 150.78 per dollar
• The offshore yuan was little changed at 7.1266 per dollar
• The British pound fell 0.1% to $1.3411

Cryptocurrencies

• Bitcoin rose 2.2% to $111,312.37
• Ether rose 1.8% to $4,075.6

Bonds

• The yield on 10-year Treasuries advanced one basis point to 4.02%
• Germany’s 10-year yield was little changed at 2.59%
• Britain’s 10-year yield was little changed at 4.53%

Commodities

• Brent crude fell 0.8% to $60.83 a barrel
• Spot gold was little changed

Source