Today’s Outlook:
• US MARKET : During Monday’s session, the S&P 500 rose 1.6%, the NASDAQ Composite jumped 2.2%, and the Dow Jones Industrial Average added 1.3%, recovering from steep losses at the end of last week. The rally came after Trump said trade relations with Beijing “will all be fine,” softening remarks that had sparked market jitters over the weekend. Trump’s comments helped soothe investor nerves following his earlier threat to impose 100% tariffs on Chinese goods and restrict exports of advanced technologies. U.S. Treasury Secretary Scott Bessent said Monday in a Fox Business Network interview that President Donald Trump is still expected to meet Chinese leader Xi Jinping in South Korea later this month to ease tensions over tariffs and export controls.
The change in tone lifted sentiment across risk assets, particularly in technology and industrial shares that had borne the brunt of the recent selloff. Chipmakers and artificial intelligence-linked names led Monday’s gains. Investors remained wary ahead of a busy week that includes the start of the third-quarter earnings season and continued political gridlock in Washington. The U.S. government shutdown, now set to enter its third week, has delayed key economic data releases, adding uncertainty before the Federal Reserve’s next policy meeting on October 28-29. Investors will watch closely for quarterly results from major U.S. banks.
• EUROPEAN MARKET: European shares staged a modest comeback on Monday, shaking off Friday’s bruising selloff after U.S. President Donald Trump toned down his aggressive trade stance toward China.
The pan-European STOXX 600 index ticked up 0.4%, clawing back some losses from a 1.3% plunge after Trump threatened a 100% tariff on Chinese goods in a reprisal against China for curbing its critical mineral exports.
France’s CAC 40 edged up 0.2% after Sebastien Lecornu was reappointed as the prime minister on Friday, just four days after he had resigned from the role. At the close in Frankfurt, the DAX rose 0.55%.
•ASIAN MARKET: Asian stock markets fell in a broad-based sell-off on Monday, with Hong Kong’s tech-heavy index leading declines, as fresh U.S. tariff threats and retaliation talks from Beijing reignited trade war fears and undermined investor confidence.
Hong Kong’s Hang Seng index tumbled 2.3% on Monday, dragged down by heavy losses in major Chinese internet and technology firms. Mainland Chinese markets also weakened, with the blue-chip Shanghai Shenzhen CSI 300 and Shanghai Composite each down nearly 1%. Elsewhere in Asia, Japanese markets were closed for a public holiday, while other regional stocks fell amid tariff jitters.
• COMMODITIES:Oil prices rose on Monday after assurances that U.S. President Donald Trump will meet his Chinese counterpart Xi Jinping later in October, easing a flare-up in trade tensions between the world’s two top economies that had pushed crude benchmarks to five-month lows on Friday.
Brent crude futures settled 59 cents higher, or 0.9%, at USD 63.32 a barrel, while U.S. West Texas Intermediate crude futures also closed up 59 cents, or 1%, at USD 59.49 a barrel. Both contracts fell around 4% on Friday to settle at their lowest since May, after Trump threatened to cancel the meeting with Xi and to impose steep new tariffs on imports from China.
• INDONESIA: The JCI closed down -0.36%, entering the red zone at 8,227.2.
Keep an eye on banking stocks that are approaching oversold support areas, as current valuations appear attractive for potential buying opportunities. For more aggressive investors, monitor momentum and sector rotation, as well as accumulation trends within promising narratives and potential conglomerate sectors within certain conglomerate groups. Continue to closely monitor conglomerate stocks in your portfolio — if they start breaking below the MA20 line, it is advisable to reduce position weightings. If a pullback emerges in gold commodity-based stocks, they may serve as trading opportunities when signs of weakness appear, allowing traders to capitalize on scalping momentum in high-volatility gold-related stocks.
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