🗓 Monday, October 13, 2025
► Europe higher – rebound as trade fears ease
European equities opened higher after Friday’s sharp sell-off, supported by renewed risk appetite as Trump backpedaled on his China tariff threats and hinted at negotiations. Stoxx 600 +0.3%, DAX +0.35%, CAC 40 +0.3%, FTSE 100 -0.05%, FTSE MIB +0.4%, IBEX +0.5%. Bund 10Y 2.63% (-1bp), UK 10Y 4.65% (-2bps). EUR/USD 1.158 (-0.3%), GBP/USD 1.334 (-0.2%), USD/JPY 152.1 (+0.6%). Risk assets recovered as investors re-entered markets, led by tech and industrials, while energy and materials benefited from higher oil and metal prices. Sentiment was further lifted by improved geopolitical outlook after progress in the Hamas-Israel ceasefire process and the release of remaining living hostages.
► Wall Street futures rebound – AI, trade optimism drive recovery
US equity futures jumped following Friday’s steep losses, with Nasdaq 100 +1.6%, S&P 500 +1.2%, Dow +0.85%. The rally was driven by easing trade tensions and a strong rebound in big tech / chip & AI / china sensitive stocks (such as NVDA +2.8%, AVGO +2.8%, AMD +3.3%, as well as Big Tech MSFT +1.2%, AAPL +1.1%, AMZN +1,3 etc.) which in particular fell sharply on Friday. Trump’s conciliatory tone toward China calmed investor nerves after his prior tariff threats triggered a $2T market value wipeout last week. US 10Y 4.06% (-9bps; already on Friday) but no bond trading today due to Columbus Day, DXY +0.2%. Traders remain focused on the start of the Q3 earnings season with JPMorgan, Goldman Sachs, and Citigroup reporting Tuesday. Analysts expect strong results from banks and AI-linked firms to reaffirm fundamentals amid thin macro data due to the government shutdown.
► Asia weaker – mixed reaction to US trade headlines
Asian markets closed mostly lower before the US policy shift, with losses led by China and Japan: Nikkei -1.0%, Shanghai -0.2%, Shenzhen -0.9%, Hang Seng -1.5%, while Kospi -0.7%, Taiwan -1.4%, ASX -0.8%. USD/JPY 152.1 (+0.6%). Sentiment was cautious after Friday’s global sell-off, though US futures gains and optimism on AI investments helped futures in Taiwan and South Korea recover post-close. Investors now eye US-China developments and potential policy reactions from Beijing as the yuan weakened slightly.
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