With Focus on Earnings Season, Stocks Falter – Europe Market Wrap

US equities are expected to recover some of their losses from Friday’s selloff after Trump backtracked on his tariff threats against Beijing, signalling a readiness to talk. Gold reached a new all-time high.

S&P 500 futures rose 1.2% after the benchmark fell the most since April. Nasdaq 100 contracts rose by up to 2.3%. Treasury futures fell, with cash trade in US bonds delayed for Columbus Day. The rush for gold continued as the metal surpassed $4,070 per ounce.

Meanwhile, French bonds remained stable as Macron revealed a new cabinet to address a brewing political crisis. Silver hit its highest level in decades amid a record short squeeze in London. Crypto rebounded after the weekend’s selloff. The Dollar held steady, as oil prices jumped for the first time in three days.

Risky assets recovered after the Trump administration moderated its language against China, threatening an additional 100% tariff on the country’s imports over previously announced export limits. Big selloffs have been rare recently, with the S&P 500 bolstered by confidence about artificial intelligence and the potential of US interest rate reduction.

Investors will also pay particular attention to comments from global policymakers and finance ministers at this week’s IMF and World Bank autumn meetings. In recent weeks, central bankers have issued a chorus of cautions that the AI-driven market rally may be about to reverse.