Markets Rise on Talks
Asian stocks rise and oil falls as US-China talks boost market optimism.
Anonymous
Key Points
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The U.S.-China discussions in New York were led by Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, who agreed to create an artificial-intelligence dialogue focused on developing a common understanding of AI’s goals and risks.
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Saudi Arabia reportedly expects its 750-mile East-West oil pipeline to resume about half of its capacity within days. The pipeline allows Saudi crude to bypass the Strait of Hormuz and had been shut after drone strikes earlier in the month.
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U.S. two-year Treasury yields rose 36 basis points over two weeks to 4.7604%, while futures indicated a 56% chance of another Federal Reserve rate increase in October; Bank of America analysts said they expected additional hikes in October and December.
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The yen strengthened to around 156.60 per dollar after falling more than 2% the previous week, following reports that Japanese authorities had conducted currency-market rate checks—an indication that intervention concerns remain active.
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President Donald Trump said he was in a “deciding mode” regarding the U.S.-Iran conflict, warned that “big things” could happen in the “not-so-distant future,” and said he would probably be open to meeting Iranian President Masoud Pezeshkian at the United Nations General Assembly.
Asian stocks climbed Monday as technology shares rallied on artificial-intelligence optimism and hopes for a U.S.-China trade truce. Quartz reported that stock futures rose largely on falling oil prices ahead of planned talks between President Donald Trump and Chinese President Xi Jinping. Oil prices dropped for a fourth straight session toward $100 a barrel after Saudi Arabia signaled its East-West pipeline would resume about half its capacity within days, easing supply-disruption fears.
U.S. Treasury yields jumped as market watchers priced in odds of another Federal Reserve rate hike. Bank of America analysts expect additional increases in October and December, keeping borrowing costs elevated. The yen strengthened to around 156.60 per dollar after Japanese authorities conducted currency checks, signaling lingering intervention concerns. Sentiment remains fragile due to high debt costs, Middle East tensions, and risk of trade escalation.
Trump and Xi Take First Steps Toward Trade Deal
U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng held preliminary talks in New York and called them productive. Quartz reported the two sides agreed to establish an AI dialogue to develop common ground on the technology's goals and risks. Analysts said markets were betting on a trade-war truce extension rather than a sweeping agreement that would resolve core disputes between Washington and Beijing.
Saudi Oil Pipeline Restart Eases Global Supply Worries
Saudi Arabia's 750-mile East-West pipeline, shut after drone strikes earlier this month, is expected to resume about 50% capacity within days. The line allows Saudi crude to bypass the Strait of Hormuz, a critical chokepoint for global oil shipments. Free Malaysia Today reported that more supply leaving the Gulf than expected drove oil toward $100 a barrel, reducing immediate inflation pressure despite lingering Middle East risks.
Treasury Yields Spike as Rate-Hike Bets Climb
U.S. two-year Treasury yields jumped 36 basis points over two weeks to 4.7604%, signaling traders expect the Federal Reserve to keep hiking. Futures markets now price a 56% chance of another rate increase in October. Bank of America economists say they expect additional hikes in both October and December, keeping borrowing costs punishing for companies and households trying to take on debt.
Trump Signals More Moves Against Iran Could Be Coming
President Donald Trump said he is in a "deciding mode" on the U.S.-Iran conflict and warned that "big things" could happen in the "not-so-distant future." He added he would likely be open to meeting Iranian President Masoud Pezeshkian at the United Nations General Assembly. The remarks hint at unpredictability in a region already roiled by strikes and disruptions to oil flows.
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