Group 1: U.S.-Australia Agreement on Rare Earths - The U.S. and Australia signed an $8.5 billion agreement focused on rare earths and critical minerals to secure supply chains and counter China's market dominance [2][9] - Both countries will contribute $1 billion each over the next six months for joint projects, with Australia being a key global lithium producer [2][9] Group 2: U.S. Business Lobbying - A powerful U.S. business lobbying group, including companies like Oracle, Amazon, and Exxon Mobil, is urging the Trump administration to suspend new export restrictions to China, citing billions in halted trade [3][9] Group 3: Corporate Developments - Plantro has withdrawn its takeover bid for Dye & Durham Limited, resulting in a significant drop in the company's share price due to ongoing governance disputes [4][9] - Velan Inc. announced a substantial order exceeding $20 million CAD from Ontario Power Generation for supplying Emergency Cooling Injection valves for nuclear reactors [5][9] Group 4: Legal and Regulatory Issues - A U.S. District Judge is expected to block a Trump administration policy that could withhold federal funds from states not complying with directives on sexual health education, potentially impacting at least $35 million in grants [6][9]

Market Performance - The US benchmark S&P 500 rose by 1.13%, the Dow Jones Industrial Average climbed by 1.04%, and the Nasdaq Composite increased by 1.49%, driven by easing investor fears over regional banks and positive sentiment regarding a potential trade deal with China [1][4][29] - Apple shares surged by 5.35% this year, contributing significantly to the Nasdaq's performance, as strong iPhone sales data indicated a potential shift beyond the typical iPhone refresh cycle [5][6][7] Trade Relations - President Trump expressed optimism about reaching a trade deal with Chinese President Xi Jinping during their upcoming meeting in South Korea, highlighting a good relationship between the two nations [2][26] - Trump has threatened to impose additional tariffs on China, potentially raising the total US tariffs on Chinese goods to 157%, following China's export controls on rare earths essential for chip production [3][11] Company-Specific Developments - Apple has seen a significant rebound in its stock price, hitting a record of $264.22, following an upgrade from Loop Capital based on strong demand for the iPhone 17, which saw sales 14% higher than the iPhone 16 during the initial launch period [6][7][17] - Defence stocks, particularly Babcock International and Rolls Royce, surged as hopes for a peace deal in Ukraine faded, with Babcock rising by 2.3% and Rolls Royce by 1.9% [12][13] Economic Indicators - Oil prices fell by 1% to $60.68 per barrel due to concerns over a global supply glut and lower economic growth [8] - The US Treasury signed a $20 billion lifeline for Argentina's economy, which is expected to provide vital access to US dollars and support President Javier Milei ahead of midterm elections [18][19] Consumer Sentiment and Business Outlook - Consumer sentiment dipped slightly to 47.4 in October, indicating financial stress among households despite rising incomes, as high bills continue to impact disposable income [56][57] - Canadian businesses are facing significant layoffs in the steel and aluminum sectors due to the impact of US tariffs, with a weak outlook for growth in domestic export sales [23][24]

Gains Resume as US-China Trade Tensions Ease - Bloomberg Surveillance https://t.co/Z6mLchumVB ...

Economic Outlook - The Australian dollar rose by 0.3% to $0.6504, buoyed by positive economic data from China and a more optimistic trade outlook [1][4] - China's economy grew by 1.1% in Q3, surpassing forecasts, with industrial output increasing by 6.5%, although the annual growth rate of 4.8% was the weakest in a year [2][3] - Analysts suggest that China is on track to meet its growth target of around 5%, indicating resilience against U.S. tariffs [3] Political Developments - The yen weakened initially as Sanae Takaichi appeared set to become Japan's next prime minister, following crucial political backing [1] - Takaichi's bid for premiership was bolstered by an alliance with the Japan Innovation Party, aligning more closely with her policy views after a previous coalition breakup [5][6] - The market is reacting positively to the potential for Takaichi's leadership, leading to bullish equities and bearish sentiment towards the yen [5] Market Sentiment - Market analysts indicate a sense of "mutually assured destruction" regarding U.S.-China trade tensions, with both sides acknowledging the risks of escalating tariffs [4] - There is a prevailing sentiment that markets will remain jittery until explicit announcements of de-escalation are made [5]

China's economic growth slows as trade tensions with US flare up https://t.co/dfwI84yJoL ...

Core Insights - China's economic growth in Q3 2023 slowed to 4.8%, matching expectations and down from 5.2% in Q2, indicating ongoing challenges from a property slump and trade tensions [1][5] Economic Performance - Q3 GDP growth was 4.8% year-on-year, aligning with forecasts and down from 5.2% in Q2 [5] - Quarter-on-quarter GDP growth was 1.1%, surpassing the forecast of 0.8% and slightly up from a revised 1.0% in Q2 [5] - Industrial output in September increased by 6.5% year-on-year, exceeding the forecast of 5.0% [5] - Retail sales in September grew by 3.0% year-on-year, matching forecasts but down from 3.4% in August [5] - Fixed asset investment from January to September decreased by 0.5% year-on-year, contrary to the forecast of a 0.1% increase [5] - Property investment from January to September fell by 13.9% year-on-year, worsening from a 12.9% decline in January-August [5] Market Reactions and Expectations - Analysts suggest that while the GDP number is decent, domestic activity and investment remain weak, indicating a need for further demand stimulation [2][4] - There is an expectation that Beijing will meet its 2025 growth target of around 5%, with little need for broad fiscal stimulus at this time [2] - The upcoming Fourth Plenary Session is anticipated to maintain a stable USD/CNY exchange rate as the People's Bank of China aims to minimize volatility [2]

US equity futures rose 0.3% in early Asian trading, after Wall Street closed last week higher as President Donald Trump moved to ease concerns over trade tensions. https://t.co/rh46Z9eB3N ...

Economic Overview - China's economy is facing deep structural challenges, including fading growth drivers, a prolonged property downturn, and entrenched deflation, contrasting with the temporary pandemic shocks experienced previously [1] - The upcoming fourth plenum in Beijing will provide insights into the government's priorities for the 2026-2030 period, with a focus on rebalancing the economy towards domestic consumption [1] Foreign Investment and Trade - Inbound foreign direct investment in China has decreased by nearly 13% in the first eight months, indicating a potential third consecutive year of decline [2] - Despite the decline in foreign investment, the goods trade balance has reached a record $875 billion this year, highlighting strong foreign demand [2] Investment and Industrial Activity - Fixed-asset investment is projected to remain unchanged year-on-year in the first nine months, continuing a downward trend since May, despite increased government borrowing aimed at supporting local authorities [3] - Public spending on infrastructure has not compensated for the decline in housing investment and a slowdown in manufacturing investment [3] Retail and Industrial Output - Retail sales are expected to grow by 3% in September, while industrial output is forecasted to increase by 5%, marking the weakest performance for both metrics this year [4] GDP Growth and Economic Outlook - China's GDP is estimated to have risen by 4.7% in the third quarter, down from 5.2% in the previous quarter, reflecting a slowdown in economic momentum [5][6] - The IMF predicts a growth rate of 4.8% for China in 2025, with a further slowdown to 4.2% expected next year, citing weak prospects and ongoing real estate investment shrinkage [6]

Group 1 - Soybean contracts experienced a rally, increasing by 7 to 9 cents, with November futures rising 12 ¾ cents this week after testing the $10 mark [1][3] - The national average cash bean price rose by 9 1/4 cents to $9.45 ½, indicating a firming basis [1] - Soymeal futures increased by $2.40 to $4.10 on the day, resulting in a $6 gain for December over the week [2] Group 2 - Soy Oil prices were up 24 to 29 points on Friday, with December futures gaining 116 points over the past five trading days [2] - November soybean futures averaged $10.16, down from $10.54 in February but up from $10.03 last fall [3] - President Trump expressed optimism regarding China relations ahead of an upcoming leaders meeting, stating that 100% tariffs on China are not sustainable [3]

Global Economy Risks - Trade tensions, geopolitical mistrust, and AI euphoria are increasingly entrenched risks to the global economy [1]