🗓 Monday, October 22, 2025
► Europe higher – trade optimism and earnings strength support rally
European stocks advanced modestly as optimism over a nearing US-China trade deal and strong earnings boosted sentiment. Stoxx 600 +0.2%, DAX +0.4%, CAC 40 +0.3%, FTSE 100 +0.6%, FTSE MIB +0.9%, IBEX +0.6%. EUR/USD 1.164 (+0.2%), GBP/USD 1.335 (+0.3%), USD/JPY 152.7 (-0.1%). Banks and energy led gains as traders anticipated more rate cuts from the Fed later this week and new sanctions on Russian oil companies boosted oil majors. Broader sentiment improved, driven by optimism that Trump and Xi could reach a breakthrough in upcoming trade talks.
► Wall Street higher – trade hopes and Big Tech earnings drive gains
US markets rallied as easing trade tensions and anticipation of major tech earnings fueled buying. S&P 500 +0.8%, Nasdaq 100 +1.3%, Dow +0.5%. Nvidia +2.3%, Broadcom +2.1% and other big tech companies mostly higher. Treasury Secretary Bessent said the US and China had agreed on several trade points ahead of the Trump-Xi summit, sending futures to record highs. Traders expect the Fed to cut rates on Wednesday, with inflation easing to 3%. Corporate news also lifted sentiment: Novartis (+1.4%) confirmed a $12B acquisition of Avidity Biosciences (+43%), Huntington Bancshares acquired Cadence Bank, and Keurig Dr Pepper surged +9% on M&A talks.
► Asia higher – trade deal optimism and chip rally lift sentiment
Asian markets rallied strongly, tracking Wall Street higher as investors priced in trade progress and dovish central banks. Nikkei +2.5%, Kospi +2.6%, Taiwan +1.7%, Shanghai +1.2%, Shenzhen +1.5%, Hang Seng +1.0%, Nifty +0.7%, ASX +0.4%. USD/CNY 7.11 (-0.2%), USD/JPY 152.8 (-0.1%). Semiconductor and AI-related stocks surged following Nvidia’s rebound, while Chinese equities gained after Commerce Minister Wang reiterated opposition to decoupling. Sentiment was boosted by expectations that Xi and Trump will finalize a framework deal later this week.
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