The US and China representatives reached a preliminary trade agreement. Saudi Arabia is once again leaning towards increasing oil production

The Dow Jones Index (US30) rose by 0.71% by the end of Monday. The S&P 500 Index (US500) gained 1.23%. The Technology Index Nasdaq (US100) closed higher by 1.86%. Major Wall Street indices finished Monday with sharp gains after US and Chinese officials reported reaching a preliminary trade agreement during talks held over the weekend in Malaysia. The final details of the deal are expected to be agreed upon on Thursday at a summit between Presidents Donald Trump and Xi Jinping during the ASEAN conference. The US Treasury Secretary stated that the agreement means removing the threat of introducing 100% tariffs on Chinese imports, which were supposed to take effect on November 1, from the agenda. In turn, China agreed to refrain from restricting the export of rare earth metals for at least one year.

European stock markets were mostly up yesterday. Germany’s DAX (DE40) rose by 0.28%, France’s CAC 40 (FR40) closed with a gain of 0.16%, Spain’s IBEX35 (ES35) climbed by 0.87%, and the UK’s FTSE 100 (UK100) closed up 0.09%. Negotiations between the European Union and a Chinese delegation regarding Beijing’s new restrictions on rare earth metal exports will take place in Brussels this week, as Europe seeks to protect its industrial base and reduce dependence on Chinese raw materials. European Commission President Ursula von der Leyen stated that the EU will accelerate efforts to diversify supplies and conclude new critical mineral supply agreements with partners, including Ukraine, to reduce dependence on China and protect strategic industries.

WTI crude oil prices fell on Tuesday, marking the third consecutive session of decline, as concerns about market oversupply intensified following signals that OPEC+ might consider increasing production as early as December. Saudi Arabia is leaning towards a moderate production increase, aiming to regain market share, while the group of oil producers is set to meet on Sunday.

Platinum prices pulled back slightly from the three-week high reached in mid-October. Pressure on the metal came from a decrease in demand for safe-haven assets, as signs of progress in US-China trade negotiations boosted investors’ risk appetite. Despite the correction, platinum has appreciated by nearly 50% since the start of the year, outperforming gold and silver, thanks to constrained supply, robust industrial demand, and growing interest from investors seeking diversification amid geopolitical uncertainty.

Asian markets traded with mixed dynamics yesterday. Japan’s Nikkei 225 (JP225) rose by 2.46%, China’s FTSE China A50 (CHA50) gained 1.10%, Hong Kong’s Hang Seng (HK50) was up 1.05%, while Australia’s ASX 200 (AU200) showed a negative result of 0.19%.

US President Donald Trump and Japanese Prime Minister Sanae Takaichi signed a framework agreement on securing the supply of critical minerals and rare earth elements, aimed at reducing dependence on China and strengthening strategic supply chains. The agreement is part of a broader Washington initiative to reduce reliance on China, which controls over 90% of global rare earth element processing. On Thursday, Donald Trump will meet with Chinese President Xi Jinping to discuss trade relations and strategic stability issues.

The Australian dollar reached its highest level in nearly three weeks on Tuesday, thanks to a weaker US dollar. The American currency declined as markets had almost fully priced in an expected 25 basis point rate cut by the Fed, while optimism surrounding a potential US-China trade deal reduced demand for safe-haven assets. Domestically, investors’ attention is focused on the upcoming release of third-quarter inflation data and the monthly Consumer Price Index for September, due out on Wednesday, which may provide new signals regarding future moves by the Reserve Bank of Australia (RBA). RBA Governor Michele Bullock warned that a sudden reversal of optimism in global financial markets could trigger financial instability and accelerate the process of cutting interest rates.