2025-10-13 21:07
NEW YORK, Oct 13 (Reuters) - TRADING DAY Making sense of the forces driving global markets Sign up here. Jamie McGeever is enjoying some well-deserved time off, but the Reuters markets team will still keep you up to date on what's happening in markets. The biggest U.S. banks will report third-quarter results on Tuesday, at the vanguard of the S&P 500 earnings parade over the next few weeks. I'd love to hear from you, so please reach out to me with comments at [email protected] , opens new tab Today's Key Reads Today's Key Market Moves STOCKS: Major U.S. indexes rebounded sharply, led by chipmakers like Broadcom and AI-related tech stocks, after President Donald Trump struck a more conciliatory tone that eased worries about a trade war with China. The S&P 500 (.SPX) , opens new tab was up 1.6% in late trade. The Nasdaq (.IXIC) , opens new tab was up 2.2%. SHARES/SECTORS: Information Technology is the top-performing S&P 500 sector on the day, followed closely by Consumer Discretionary. FX: The U.S. dollar steadied after Trump dialed back trade tensions with China, while political developments in France and Japan undermined the euro and the yen. BONDS: Bond markets were closed for Columbus Day. COMMODITIES: Oil prices recovered from Friday's five-month lows as talks between Trump and Chinese President Xi Jinping in late October appeared to be back on. The renewed U.S.-China trade spat vaulted gold above $4,100 an ounce for the first time. CRYPTO: According to market players on Monday, Friday's late wipeout in cryptocurrencies was the largest liquidation ever, amounting to over $19 billion of leveraged positions. On Monday, bitcoin was down 0.60% to $114,375.22 while ethereum declined 0.54% to $4,120.42. Today's Key Talking Points Trump chills out on China Just as suddenly as Trump's familiar-sounding threat to impose 100% tariffs on China for curbing exports of rare earths sent Wall Street into freefall on Friday, de-escalation on Monday invited a rush of renewed stock buying that looked to put record territory back in play. Treasury Secretary Scott Bessent told Fox Business Network that the president was back on track to meet Chinese President Xi Jinping in South Korea later this month as originally planned. While Monday was a normal day for stock markets, bond traders were off for Columbus Day and Indigenous Peoples' Day. The federal holiday came as many government workers are already furloughed while the shutdown drags on, and some could be out of a job when Congress ends it and agrees on a spending bill. There is no sign that Democrats and Republicans will find common ground this week, meaning indicators like producer prices, retail sales and weekly jobless claims will not be released and join the list of important, but probably stale, data like September payrolls that will someday be released in a flood. But Tuesday promises to be busy nevertheless with JPMorgan Chase JPM, Goldman Sachs GS, Citigroup C and Wells Fargo WFC releasing earnings to kick off the third-quarter reporting season. Also Federal Reserve Chairman Jerome Powell speaks in Philadelphia on economic conditions and monetary policy, with data-starved traders even more keen to get a read on how the Fed will make a decision to ease again, or not, when it is missing weeks of information on the economy. Gold: The Fear Trade Gold is perhaps the biggest beneficiary of the upwelling of recriminations between Trump and Xi. It rose above $4,100 an ounce for the first time on Monday, even after they turned the heat down, with traders betting that more Fed easing by year-end will make zero-yield bullion more appealing. With central banks buying and investors availing themselves of ETFs, there appear to be enough positives to keep the rally going. Silver also hit a record above $52 an ounce. What could move markets tomorrow? Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles , opens new tab, is committed to integrity, independence, and freedom from bias. Trading Day is also sent by email every weekday morning. Think your friend or colleague should know about us? Forward this newsletter to them. They can also sign up here. https://www.reuters.com/world/china/global-markets-trading-day-2025-10-13/
2025-10-13 20:47
WTI backwardation narrows to 47 cents, lowest since Jan 2024 OPEC+ hikes output, feeding worries of supply glut Demand at prompt falls on physical builds, maintenance HOUSTON, Oct 13 (Reuters) - Front-month U.S. crude oil futures ended Monday's trading at their smallest premium since January 2024 over the seventh-month contract, as OPEC+ ramps up supply while seasonal refinery maintenance in the U.S. pressures demand for prompt barrels. Narrowing backwardation, the market term for immediate deliveries fetching a premium over later deliveries, suggests investors are making less money selling their oil in the spot market because near-term supply is perceived to be ample. Sign up here. A reversal of the spread from a premium to a discount would put U.S. oil futures in a contango for the first time since last January. WTI crude futures for November delivery settled at $59.49 per barrel on Monday, while the May 2026 contract settled at $59.02 per barrel, creating a 47 cent premium for prompt barrels , the narrowest since January 16 last year. "This narrowing is indicative of excess supplies in the near term, and then concerns that when demand increases in the future, supplies will get tighter again," said Andrew Lipow, president of consultancy Lipow Oil Associates. "We are seeing increased supply from OPEC+, which combined with reports of more oil in floating storage is putting pressure on the front end of the curve, as well as seasonal refinery maintenance in the U.S.," Lipow added. OPEC+, made up of the Organization of Petroleum Exporting Countries and its allies, has increased its oil output targets by more than 2.7 million barrels per day this year, equating to about 2.5% of global demand, stoking supply glut concerns. This is flattening the WTI curve as the market is now pricing in less tightness in early 2026 balances, Shohruh Zukhritdinov, a Dubai-based oil trader said. Meanwhile, U.S. refinery utilization on a four-week average fell for the fourth straight week to 92.5% in the week to October 3, to its lowest since the first week of June, considered the start of the U.S. summer driving season, according to the Energy Information Administration. "Physical builds and refinery slowdowns equate to less need to pay up for prompt barrels," Zukhritdinov said. https://www.reuters.com/business/energy/us-oil-futures-backwardation-narrows-20-month-low-mounting-fears-glut-2025-10-13/
2025-10-13 17:55
Hot-cold air fronts brought unexpectedly strong rainfall Emergency response was focused on tropical storms in Pacific Many terrains, rivers already soaked by months of rainy season Over 100,00 homes affected, power knocked out across 5 states MEXICO CITY, Oct 13 (Reuters) - Torrential rains that lashed Mexico last week killed at least 64 people and 65 more are missing, the government said on Monday, after a tropical depression triggered landslides and flooding in parts of the Gulf Coast and central states. The unnamed depression came toward the end of the rainy season, battering land and bursting rivers that had already been soaked by months of rains, while forecasters were focused on tropical storms and two hurricanes on the Pacific coast. Sign up here. "This intense rain was not expected to be of such magnitude," President Claudia Sheinbaum told reporters. Admiral Raymundo Morales, Mexico's Navy secretary, said the flooding was the result of the coming together of warm and cold air fronts over rivers that were already filled to the brink and mountains weakened by months of rain. Around 100,000 homes were affected, Sheinbaum said. She is set to meet with the finance ministry later in the day to discuss rebuilding efforts, and visit some hard-hit states. Laura Velazquez, national coordinator of civil protection, said Hidalgo and Veracruz were the states worst affected, with 29 deaths and 18 missing reported in Veracruz, and 21 deaths and 43 missing in Hidalgo. The rain also destroyed infrastructure such as bridges and left streets filled with mud. Videos and images from last week showed emergency responders wading through deep waters to find stranded residents and get supplies to affected communities. Authorities have deployed thousands of personnel to help evacuate, clean up and monitor the places that were hardest hit. Electricity, which had been knocked out in towns across five states, has largely been restored. Authorities said they will also focus on containing the spread of viruses such as dengue, carried by mosquitoes that breed in stagnant water. https://www.reuters.com/business/environment/torrential-rains-flooding-leave-least-64-dead-65-missing-mexico-2025-10-13/
2025-10-13 17:43
Oct 13 (Reuters) - Federal Reserve Bank of Philadelphia President Anna Paulson said on Monday that if inflation pressures do not moderate as she expects the central bank should be willing to take action. If inflation shows “a burst of, you know, shows some life, then the Fed's going to have to react appropriately, whether that's, you know, keeping the policy rate at, you know, current levels or whether that's increasing” the rate, Paulson said at an event held by the National Association for Business Economics in Philadelphia. Sign up here. https://www.reuters.com/business/feds-paulson-says-fed-would-react-burst-inflation-2025-10-13/
2025-10-13 17:43
PARIS, Oct 13 (Reuters) - French nuclear operator EDF said on Monday that it raised its estimates for nuclear production for the full-year 2025 to between 365 terawatt hours to 375 TWh due to improvements in the maintenance program. The estimate for 2026 and 2027 remains unchanged between 350 TWh and 370 TWh, the utility said. Sign up here. https://www.reuters.com/sustainability/sustainable-finance-reporting/edf-raises-2025-nuclear-production-estimates-2027-unchanged-2025-10-13/
2025-10-13 17:37
KYIV/WASHINGTON, Oct 13 (Reuters) - Ukrainian President Volodymyr Zelenskiy said on Monday that he would meet U.S. President Donald Trump in Washington on Friday, where the two would discuss Ukraine's air defence and long-range strike capabilities. The two leaders spoke on both Saturday and Sunday amid intensifying discussions about the potential provision of long-range Tomahawk missiles to Kyiv, and a Ukrainian delegation led by Prime Minister Yulia Svyrydenko is slated to visit Washington before the Friday meeting. Sign up here. Kyiv has been lobbying Washington to supply the U.S.-produced missiles, which have the capacity to hit Moscow, but which Ukrainians say would be used only on military targets. Moscow has said such a move would represent a serious escalation. Zelenskiy said he had given Trump, who has increasingly signalled frustration with Russia in recent weeks, an idea of how many of the coveted Tomahawks Ukraine needs. "Frankly, I've already shared our vision with Trump... but some of these things are not for a phone conversation, so we'll meet," he told reporters in Kyiv. Trump has said he is considering sending the missiles to Ukraine, though he has also said he might talk to Russian President Vladimir Putin about it. Ukraine and the U.S. are also closing in on a landmark drone deal in which Ukraine would share drone technology with the United States. European diplomats see such a deal as an important tool for keeping the mercurial U.S. president engaged and supportive of Ukraine. Diplomatic efforts to end the war, now in its fourth year, have stalled as Russia steps up strikes on Ukrainian energy facilities and presses forward with grinding gains on the battlefield. Zelenskiy said he will also meet with representatives of U.S. energy companies to discuss Ukraine's current needs amid what he described as shifting Russian tactics in strikes on Ukrainian energy infrastructure. Russian forces have recently targeted Ukrainian gas production and the country's power grid, with Zelenskiy adding that Kyiv could soon be forced to begin importing electricity. Ukraine has also carried out strikes on Russian oil refineries, causing gasoline shortages. https://www.reuters.com/world/trump-meet-zelenskiy-friday-talk-air-defense-new-weapons-2025-10-13/
