Headlines:Risk appetite picks up as Trump plays down feud with ChinaBitcoin slumps to fresh four-month lows, technical trouble continues to brewECB’s Simkus: I like the idea of a risk management cutBoE’s Pill: A more cautious withdrawal of monetary policy restriction may be appropriatePBOC governor says will continue to implement appropriately loose monetary policyBOJ’s Uchida: Japan economy recovering moderately, albeit with some weak signsJapan’s Nippon Ishin party co-leader says made big progress in talks with LDP todayEurozone September final CPI +2.2% vs +2.2% y/y prelimMarkets:CHF leads, EUR lags on the dayEuropean equities lower; S&P 500 futures down 0.3%US 10-year yields up 1.2 bps to 3.988%Gold down 0.8% to $4,292.92WTI crude oil down 0.1% to $57.38Bitcoin down 1.8% to $105,946For the better part of European morning trade, things were quiet with the risk mood looking rather dour after the selloff in stocks yesterday. That carried over to today with US-China trade tensions also seemingly on edge, awaiting further developments. And we got that with US president Trump officially confirming a meeting with China president Xi Jinping in two weeks’ time.Trump also sounded less worried and angry about the whole China situation, reacting calmly in an interview with Fox Business. He said that he thinks that “we’ll be fine with China” and that high tariffs were “unsustainable”, adding that he doesn’t see them lasting but wouldn’t rule it out entirely.So, that’s leading to a stirring bounce in risk assets in the handover to US trading here now. S&P 500 futures slumped all throughout the session, being down by around 1.3% before rebounding now to pare losses down to just 0.3% on the day. Meanwhile, 10-year yields in the US also bounced back up from lows around 3.94% to around 3.98% at the moment.In the major currencies space, the dollar also trimmed early losses with USD/JPY in particular coming back up strongly from 149.40 earlier in the session to climb back above 150.00 now. The pair is still down 0.2% on the day but it’s a win for the dollar, at least for now, as we look to US trading.EUR/USD was just marginally higher but is now trading flat at 1.1690 while GBP/USD is also just holding little changed at around 1.3437 currently. Meanwhile, AUD/USD cut losses from around 0.6450 to 0.6485 now – also trading flat on the day.As for European stocks, the risk rebound isn’t translating to much of a meaningful bounce here overall. Investors are having to play catch up to Wall Street losses overnight as well and the DAX is still keeping down by over 1.6%. France’s CAC 40 index is at least paring a chunk of its losses, being down by just 0.2% on the day currently.Elsewhere, gold enjoyed a solid run up earlier in the day after a volatility spike in Asia. The precious metal fell to $4,280 during Asia trading before rallying back up to $4,370 levels in European trading. The momentum held for a while before it slowly waned and has now completely dissipated as the risk mood picks up. Gold is now down 0.8% to $4,292 as profit-taking and exhaustion also factors into the equation.To round things off, we also had crypto action with Bitcoin slumping to fresh four-month lows on the day. The cryptocurrency briefly fell below $104,000 but is still threatening a break under its 200-day moving average for now. It will be the first time it drops below both key daily moving averages since April, so there’s some technical danger to be wary of before the weekend. This article was written by Justin Low at investinglive.com. 🔗 Read Full Article 💡 DMK Insight In a world where geopolitical tensions and central bank musings can send markets on a rollercoaster, it’s almost poetic that Trump’s attempt to smooth over the China feud coincides with Bitcoin’s latest dip. As traders grapple with fresh four-month lows in crypto, it’s a stark reminder that risk appetite can be as fickle as a cat on a hot tin roof. Meanwhile, central bankers are tiptoeing around monetary policy like it’s a game of Twister—one wrong move, and we could see a cascade of market reactions. So, while the headlines may suggest a calm before the storm, savvy investors know that the real action often lies in the shadows of these seemingly benign statements. 📮 Takeaway In the dance of global finance, today’s calm can quickly turn into tomorrow’s chaos—stay alert and keep your risk management sharp.

Trump on Fox Business:China is always looking for an edgeI don’t know what’s going to happenWe’re going to meet in a couple weeksOn China tariffs, says they’re not sustainableChina forced me to do thatWe’re going to do fine with ChinaWe have to have a fair dealThis sounds like a guy who is ready to TACO again. This article was written by Adam Button at investinglive.com. 🔗 Read Full Article 💡 DMK Insight In a world where trade negotiations often feel like a high-stakes poker game, Trump’s latest remarks on China are a reminder that the art of the deal is as much about theatrics as it is about strategy. His admission that tariffs aren't sustainable hints at a potential pivot, but let’s not forget: the only thing more unpredictable than trade policy is the man himself. As traders parse these comments, they should brace for volatility—because when it comes to U.S.-China relations, the only certainty is uncertainty. 📮 Takeaway Expect market jitters as Trump’s mixed signals on China tariffs keep investors on their toes.

The USD is little changed vs the major currencies to start the NA session. Once again there will be zero economic releases. Today is the last day for Fed officials to speak as the Fed enters its blackout period after today. A look at the USDs change vs the major currencies shows:EUR -0.02%JPY -0.19%GBP -0.04%CHF -0.25%CAD -0.12%AUD unchangedNZD -0.10%In the video above, I take a technical look at 3 of the major currency pairs – the EURUSD, USDJPY and GBPUSD. What do the charts tell traders as the week comes to an end for each.In other news today, geopolitical news remains high on the list of market influences. Yesterday President Trump spoke with Russia’s Putin ahead of his meeting with Ukraine’s Zelenskyy, and both leaders indicated that they hope to meet soon.Today, Russia’s Kremlin said that several key issues must still be addressed by Foreign Minister Lavrov and U.S. Secretary of State Rubio before a summit between President Trump and President Putin. The meeting could occur within the next two weeks or later, with both sides stressing that no time should be wasted. During their recent communication, Putin reaffirmed Russia’s openness to a negotiated settlement in Ukraine and reiterated Russia’s stance on the delivery of Tomahawk missiles to Ukraine.The other key relationship is with China, as both countries turn up the heat. Yesterday USTR’s Greer said China might be looking to decouple from the U.S., which could pose challenges given that rare earths remain a critical piece of the U.S. commodity puzzle. At the same time, China is also heavily reliant on the U.S. to drive its economy. This morning, President Trump said he and China’s Xi will meet in two weeks, adding that the high tariffs on China “will not stand” and that he believes “we will be fine” with China.Meanwhile, the U.S. government shutdown—now in its 17th day—continues, with President Trump threatening to permanently shut down Democratic programs as leverage to reach an agreement.White House Economic Adviser Kevin Hassett also spoke today, addressing the broader situation. He expressed confidence in the U.S. economy, stating that there is no reason why 4% growth cannot be sustained. Hassett said that the Federal Reserve’s three rate cuts are a good start in supporting continued expansion. On trade, he emphasized that the U.S. is not in a trade war with China and that he is optimistic both nations can restore a mutually beneficial relationship, though he acknowledged disappointment with some of China’s actions. He added that while China currently holds some leverage, escalating tensions would hurt them more.On fiscal matters, Hassett warned that if the government shutdown continues beyond the weekend, President Trump is likely to ramp up actions. In discussing credit markets, he noted that banks have ample reserves, optimism can keep markets ahead of the curve, and investors should recognize that a new administration is shaping policy direction.The broader US stocks are lower in the morning snap shot (but above earlier lows) after giving up earlier gains yesterday and closing down on the day. The Nasdaq is the laggard today.Dow up 36 pointsS&P -7.07 pointsNasdaq -73 pointsIn the US debt market yields are higher. Yesterday the 10 year yield closed below the 4% and at the lowest levels since October 2024:2 year yield 3.444%, +1.9 basis points5 year yield 3.578%, +2.1 basis points10 year yield 3.993%, +1.7 basis points30 year yield 4.600%, +1.7 basis pointsBitcoin continues to get hammered. The person a $-2369 or -2.19% at $105,837.Crude oil is also lower once again with the price trading below the $57 level all the way down to $56.15. The low price for 2025 is up $55.15. The current price is trading at $57.07 down $0.41 or -0.73%.And surprisingly, Gold is down on the day. The current price is down -$31.82 or -0.73% at $4293. Nevertheless the decline did not come for the price reached a new record high at $4380.79 earlier today. Looking at the hourly chart, the price is testing the low of a channel trendline. The high price reached earlier today, extended above the high of the channel, but failed. This article was written by Greg Michalowski at investinglive.com. 🔗 Read Full Article 💡 DMK Insight As the USD holds its ground against major currencies, it’s a bit like watching a heavyweight boxer take a breather before the next round—no economic punches thrown today, and the Fed is about to zip its lips. With officials entering their blackout period, traders are left to ponder what the silence might signal for future monetary policy. It’s a curious moment; while the markets may seem stable, the calm before the storm often hides the most intriguing opportunities. So, keep your eyes peeled—when the Fed finally speaks again, it could be a game of musical chairs, and you don’t want to be left standing. 📮 Takeaway In a quiet market, the real action is often just around the corner—stay alert for the Fed's next move.

A report early this week in the WSJ highlighted that China doesn’t think Trump will let the US stock market fall in a trade war and that’s tough to argue with given his comments today. On Fox Business he called 100% tariffs on China unsustainable and repeatedly said everything will be fine while also indicating he didn’t know what would happen.That’s been good enough to lift US stock futures back to flat on the day. S&P 500 futures had been 80 points lower a few hours ago and are now nearly flat. This article was written by Adam Button at investinglive.com. 🔗 Read Full Article 💡 DMK Insight In a world where trade wars feel like a high-stakes poker game, it seems China is betting on Trump’s reluctance to let the market take a hit. The irony here is that while the President touts resilience, his own words reveal a delicate dance between bravado and reality. Investors should take note: when the stakes are this high, the market’s pulse can swing wildly, and the last thing anyone wants is to be caught holding the bag when the music stops. 📮 Takeaway In the unpredictable arena of trade, it’s not just about tariffs; it’s about who’s willing to blink first.

Comments from the WTO leader:World trade system has been undermined by US tariffs and bilateral deals, but still proving resilientSays she agrees WTO needs reforms, should use this crisis to make organization more flexible, faster and more efficientSays very worried about spike in US-China trade tensions, hopes they de-escalateIt’s hard to imagine what role the WTO can even play in the future. This article was written by Adam Button at investinglive.com. 🔗 Read Full Article 💡 DMK Insight In a world where trade feels like a high-stakes poker game, the WTO leader's remarks are a sobering reminder that the chips are still in play, albeit a bit wobbly. While US tariffs and bilateral deals have thrown a wrench into the gears of global commerce, the resilience of the trade system suggests that it’s not quite ready for the scrap heap just yet. The call for reform is not just a bureaucratic nod; it’s a signal to traders and investors that adaptability is the name of the game. After all, in the unpredictable landscape of US-China relations, a little flexibility might just be the secret sauce to weathering the storm. 📮 Takeaway As trade tensions simmer, the WTO's push for reform highlights the need for agility in a world where the only constant is change.