Overnight – Stocks jump on US/China Trade peace optimism
Stocks jumped overnight as investors looked ahead to week of major quarterly earnings reports and hopes grew for the the end of U.S. shutdown as well as the prospect of a U.S.-China trade deal.
Investor sentiment improved after President Donald Trump signaled that the U.S. might reconsider steep tariffs on China, hinting at a more constructive trade outlook. He confirmed an upcoming meeting with President Xi Jinping in South Korea, while Treasury Secretary Scott Bessent met with Vice Premier He Lifeng for talks that both sides described as “constructive.” The news helped calm markets that had fallen earlier in the month following threats of 100% tariffs, even as China’s economic growth slowed to its weakest pace in a year.
Attention is turning to a packed week of U.S. corporate earnings, with Netflix and Tesla leading a lineup that includes GE Aerospace, Coca-Cola, Philip Morris, RTX, GM, Lockheed Martin, and Texas Instruments. Investors will watch to see how companies are managing profits amid tariff disruptions and a softer labor market. The delayed September consumer price index, due Friday, will provide a key read on inflation as the prolonged federal government shutdown nears resolution.
Meanwhile, major banks’ strong earnings last week lent some optimism to markets. In corporate updates, Apple’s iPhone 17 has outperformed early sales expectations, Amazon faces scrutiny after a Web Services outage, and Adobe unveiled a new AI development platform. Molson Coors announced plans to cut 400 jobs in the Americas as part of a restructuring effort.
ASX Overnight: SPI 9089 (+0.52%)
The Day Ahead:
Expect XJO to test recent highs today led by the resources sector. Albo and Trump have just announced a critical minerals deal so happy days to anyone long ASX names in that sector. Banks in particular CBA looked to have bottomed out, so if that catches a bid then expect new highs by the end of todays session
Yesterdays Session:
The Australian sharemarket rebounded from a weak start on Monday, with the S&P/ASX 200 up 0.1% to 9005.9 as gains in technology offset heavy losses in materials. Most sectors advanced, but gold and critical minerals stocks fell sharply, dragging major miners lower. Deep Yellow and Bapcor plunged after corporate setbacks, while Beach Energy, DroneShield, and Zip rose on stronger performance updates.
You can now listen & Watch to the Pre Market Pulse
Be Alert, But Not Alarmed: Cracks Showing in Credit Markets
With so much happening in AI, precious metals, geopolitics & US politics, it’s easy to get caught up in the day-to-day noise. But one thing that is very important to monitor is the subtle yet significant shift is emerging in credit markets that’s worth keeping on your radar.
The Scramble for Critical Minerals: A Boom for ASX Investors?
In the high-stakes world of global commodities, a new scramble is underway—one that could redefine supply chains and spark massive investment opportunities