Global Markets Focused on Trump and Xi Summit

Global Markets Prepare for a New Week

As global markets enter a new week, attention is focused on the critical importance of the U.S. Federal Reserve's (Fed) decisions and the Trump-Xi summit, which holds significance for U.S.-China trade relations.

Important Developments This Week

This week, the policy decisions of the central banks of Europe, Canada, and Japan, as well as the financial performances of technology giants, will be under investors' scrutiny.

Trump's Asia Tour

U.S. President Donald Trump will begin his Asia tour in Malaysia, followed by visits to Japan and South Korea. On October 27, Monday, he is expected to hold official meetings in Japan, including significant discussions with Emperor Naruhito and Prime Minister Sanae Takaichi.

Durable Goods Orders and Economic Indicators

On the same day, durable goods orders for September will be released in the U.S.; however, the government shutdown could delay the release of this data. On the Asian front, the Financial Street Forum will take place in Beijing, New Horizon Health will be delisted from the Hong Kong Stock Exchange, and Solana will begin trading with a spot ETF.

Eyes Fixed on the Fed Meeting

On Tuesday, the Fed will begin a two-day meeting. Additionally, the consumer confidence index for October is expected to be released, but the impact of the government shutdown on this data is unknown. Nvidia CEO Jensen Huang will make important statements at an AI-themed conference.

Earnings Reports Intensifying

Earnings reports from leading companies such as Visa, UPS, PayPal, Novartis, and HSBC are eagerly anticipated by investors. On Wednesday, the Fed's interest rate decision will be announced at 21:00 (UTC+3), with the market expecting a 25 basis point cut. The remarks from Fed Chairman Jerome Powell will be crucial for market direction.

Diplomatic Traffic and Economic Data

Thursday is expected to see an increase in diplomatic activities; Trump will meet with Xi Jinping in South Korea. The interest rate decisions of the European and Canadian central banks could increase market volatility. If the government shutdown ends, third-quarter growth and inflation data will be released in the U.S.

New Tariff Threat

The weekend will mark a critical juncture on the trade front. If the Trump-Xi summit yields negative results, new tariffs on Chinese goods may come into effect on November 1, with taxes on certain products potentially rising to 100%. The U.S. Supreme Court will address the case regarding the legal basis for these tariffs.

Key Data to Watch This Week

Throughout the week, growth data from the Eurozone, Mexico, and South Korea, China's manufacturing PMI, and inflation figures from the Eurozone and Australia will attract investors' attention. Particularly, these figures could increase uncertainty in the markets.