US-China Talks Revive Stock Markets: Investors Hopeful

Hopeful Anticipation in Global Markets

Global financial markets are experiencing a volatile trend due to the critical talks between the USA and China. These developments, occurring ahead of the Federal Reserve (Fed)'s interest rate decision, are increasing investors' risk appetite. The reduction of tensions between the world's two largest economies, combined with positive market sentiment, is supporting the rise of stock markets.

Positive Signs in Company Earnings

Particularly, earnings reports from US companies generally show that they are not significantly affected by tariffs. This situation is enhancing optimism in the markets and attracting investors' attention. However, uncertainties remain about whether the meeting between President Donald Trump and Xi Jinping will fully resolve complex issues such as national security and technology competition.

Wind in Energy and Metal Markets

Today, US Treasury Secretary Scott Bessent's expectation of a delay in China's export controls on critical minerals is increasing volatility in energy and metal markets. Gold prices are under pressure as investors' search for safe havens declines. Yesterday, the price of gold per ounce traded at $3,962, down 3.2%.

Positive Trend in US Stock Markets

The New York Stock Exchange is displaying a positive trend in light of expectations of a delay in China's export controls. The Dow Jones index has gained 0.71%, S&P 500 1.23%, and Nasdaq 1.86%. This week, earnings reports from major companies such as Microsoft, Alphabet, Meta, Apple, and Amazon will be a key focus in the markets.

Mixed Performance in European and Asian Markets

European stock markets are rising with the decrease in trade tensions, and there has been an increase in the Ifo Business Climate Index in Germany. On the other hand, a mixed outlook continues in Asian markets; the Nikkei 225 index in Japan fell by 0.5%, Kospi in South Korea by 1.2%, while the Shanghai Composite index in China gained 1.4%.

Borsa Istanbul Closing Session

Borsa Istanbul closed down 0.81% at 10,853.43 points due to trading activities. Today, the exchange will close at 12:30 due to the October 29 Republic Day. Economic data from Germany and the USA will be among the factors investors consider.