Global Markets: The Hope for a Trump-Xi Agreement Boosts Confidence

Discussions between the U.S. and China have been deemed "productive," with U.S. Treasury Secretary Scott Bessent stating that the threat of 100% tariffs has been "dismissed." Beijing has reportedly agreed to suspend its plan to expand export controls on rare earths for one year. Futures contracts on the Euro Stoxx 50 and Stoxx 600 rose by 0.4% in pre-opening trading, following a global upward trend. European investors are also awaiting the results of the German Ifo business climate survey and eurozone credit data for September. In the energy sector, WTI crude oil prices reached $61.70 per barrel, marking a two-week high, driven by optimism regarding global demand and trade deal prospects. Discussions between Washington and Beijing have included agricultural tariffs, export controls, and efforts to combat fentanyl. Additionally, U.S. sanctions against Rosneft and Lukoil, which account for nearly half of Russian production, have supported prices amid supply concerns. In contrast, safe-haven assets have declined. Gold fell by 1% to $4,070 per ounce, continuing its correction that began on Friday, as advancing trade negotiations between the U.S. and China dampened demand for safe-haven assets. Copper and commodity-linked currencies also gained, benefiting from improved market sentiment and expectations of a rebound in industrial demand. Investors are now focused on a busy week for monetary policy. The U.S. Federal Reserve is expected to lower rates by 25 basis points following inflation figures that fell short of expectations. Meanwhile, the European Central Bank (ECB) and the Bank of Japan (BoJ) are anticipated to maintain their current monetary policies.