1. Chinese stocks lead declines in Asia on renewed China-U.S. trade tensions
Asia-Pacific markets fell Monday after China and the U.S. tightened trade restrictions and traded fresh accusations, renewing tensions between the world’s two largest economies. Hong Kong’s Hang Seng index declined 3.41%, while mainland China’s CSI 300 traded 1.76% lower. The offshore Chinese yuan strengthened 0.1% to 7.1267 against the greenback. The 10-year China government bond yield lost more than 5 basis points to 1.752%. China on Sunday said “we are not afraid of” a trade war with the United States after President Donald Trump vowed to impose punishing new retaliatory tariffs on Chinese imports.
2. Dow drops almost 900 points; S&P 500 declines the most since April after Trump’s new China tariff threat
Stocks settled decidedly lower after a rapid decline on Friday following President Donald Trump’s threat of higher tariffs on China, in which he accused the country of “becoming very hostile” with its restrictions on rare earth metals, a key resource for the tech and defence industries. Stocks accelerated selling into the close, with the Dow Jones Industrial Average closing down 878.82 points, or 1.9%, at 45,479.60. The S&P 500 lost 2.71% to settle at 6,552.51, while the Nasdaq Composite fell 3.56% to 22,204.43. The broad-based index’s decline was the largest since April 10. Prior to Trump’s comments, stocks were sizably higher, with the Nasdaq hitting a new all-time intraday high.
3. Gold jumps above $4,000/oz again after Trump’s tariff warning on China
Gold popped back up above the $4,000-an-ounce level on Friday, set for an eighth straight weekly gain, after U.S. President Donald Trump’s warning of possible fresh tariffs on China accelerated a flight to safe-haven assets. Spot gold was up 0.8% at $4,007.39 per ounce as of 11:18 am ET (1518 GMT). The metal has gained 3.2% so far this week. U.S. gold futures for December delivery rose 1.3% to $4,024.40. Non-yielding bullion, which hit a record high of $4,059.05 on Wednesday, is traditionally considered a hedge during times of broader uncertainty. Geopolitical risks, alongside strong central bank gold-buying, exchange-traded funds inflows, U.S. rate cut expectations and economic uncertainties stemming from tariffs, have all contributed to gold’s rally. U.S. President Donald Trump said on Friday there is no reason to meet with China’s President Xi Jinping in two weeks in South Korea as planned.
4. U.S. crude oil falls 4% after Trump-China trade flare-up threatens to slow global growth
U.S. crude oil fell 4% on Friday, after President Donald Trump threatened China with higher tariffs in retaliation for Beijing imposing stricter export controls rare earth minerals. U.S. crude oil dropped $2.61, or 4.24%, to close at $58.90 per barrel. Global benchmark Brent was down $2.49, or 3.82%, to settle at $62.73 per barrel. China-U.S. trade relations were thought to be improving slowly, but this latest setback once again raised concerns higher tariffs may slow the global economy and hurt demand for oil. “I will be forced, as President of the United States of America, to financially counter their move,” Trump said on his social media platform Truth Social.
.5. Trump puts extra 100% tariff on China imports, adds export controls on ‘critical software’
President Donald Trump on Friday said the United States would impose new tariffs of 100% on imports from China “over and above any Tariff that they are currently paying,” starting on Nov. 1. Trump also said that the U.S., on that same date, would also impose export controls on “any and all critical software. “The president’s announcement came hours after he threatened to slap “a massive increase” of tariffs on Chinese imports in retaliation for new controls that China imposed on exports of rare earths minerals from that nation. Around 70% of the global supply of rare earths minerals comes from China. The minerals are essential for high-tech industries, including automobiles, defence and semiconductors. Trump suggested earlier Friday that he would cancel a meeting with Chinese President Xi Jinping at the upcoming Asia-Pacific Economic Cooperation summit in South Korea because of China’s new controls.
6.France’s Macron reappoints former prime minister Lecornu as PM
French President Emmanuel Macron on Friday named Sebastien Lecornu as prime minister, reappointing him after he quit the job earlier this week, hoping the loyalist can draw enough support from deeply divided parliament to pass a 2026 budget. In naming Lecornu, Macron, 47, risks the wrath of his political rivals, who have argued that the best way out of the country’s deepest political crisis in decades was for Macron to either hold snap parliamentary elections or resign. Lecornu’s immediate task will be to deliver a budget to parliament by the end of Monday. “I accept – out of duty – the mission entrusted to me by the President of the Republic to do everything possible to provide France with a budget by the end of the year and to address the daily life issues of our fellow citizens,” Lecornu wrote on X.
7. Qatar Air Force facility to be built at USAF base in Idaho, Defence Secretary Hegseth says
Defence Secretary Pete Hegseth on Friday announced an agreement to build a Qatari Emiri Air Force facility at a U.S. Air Force Base in Idaho. Hegeth said the facility at the Mountain Home Air Force Base will allow pilots from Qatar’s air force to train with American military personnel. The Defence secretary made the announcement at a Pentagon press conference with Qatari Defence Minister Sheikh Saoud bin Abdulrahman Al Thani. Hegseth said the facility will “host a contingent a Qatari F-15′s and pilots to enhance our combined training, increase lethality, interoperability, it’s just another example of our partnership.” Qatar is a key U.S. ally in the Middle East. The Al-Udeid Air Base, whose 10,000 or so service members make it the largest American military installation in the Middle East, is located in Qatar, near the capital of Doha.
8. U.S. sending about 200 troops to Israel to help support and monitor ceasefire deal in Gaza
The United States is sending about 200 troops to Israel to help support and monitor the ceasefire deal in Gaza as part of a team that includes partner nations, nongovernmental organizations and private sector players, U.S. officials said Thursday. The officials, who spoke on condition of anonymity to discuss details not authorized for release, said U.S. Central Command is going to establish a “civil-military coordination centre” in Israel that will help facilitate the flow of humanitarian aid as well as logistical and security assistance into the territory wracked by two years of war. The remarks provide some of the first details on how the ceasefire deal would be monitored and how the U.S. military would have a role in that effort.
9. China September exports beat expectations; imports rise at fastest pace since April 2024
China’s exports climbed at the fastest pace in six months in September, while imports logged their strongest gain in more than a year, even as a trade deal with the U.S. remains elusive. Exports grew 8.3% in September in U.S. dollar terms from a year earlier, China’s customs data showed Monday, beating Reuters-polled economists’ estimates for a 7.1% rise and rebounding from August’s six-month low. Imports jumped 7.4% last month from a year ago, sharply beating Reuters’ estimates for a 1.5% growth, marking the strongest level since April 2024, according to LSEG data. Tensions between Beijing and Washington have flared again in recent days as both sides traded barbs and ramped up respective restrictions, threatening to erode progress made after several rounds of bilateral trade talks this year.
10. Trump says ‘a lot’ of federal workers are being laid off during government shutdown
The Trump administration began laying off thousands of federal workers across a range of agencies on Friday, the 10th day of the U.S. government shutdown. President Donald Trump on Friday afternoon told reporters in the Oval Office that the number of federal workers who will be laid off will “be a lot.” “It’ll be Democrat-oriented,” Trump said, reiterating his promise to target programs he believes are favoured by Democratic officials. The permanent job cuts, formally known as “Reductions in Force,” are different from the furloughing of government workers. Furloughed employees return to their jobs after a government shutdown ends.
11. Trump threatens China with export controls on Boeing parts
The United States could impose export controls on Boeing plane parts as part of Washington’s response to Chinese export limits on rare earth minerals, President Donald Trump said on Friday. Trump has frequently used Boeing in his aggressive efforts to reshape global trade since taking office in January. During clashes with Trump over trade, Beijing in April ordered Chinese airlines to temporarily stop taking deliveries of new Boeing jets. The plane maker has also landed several large sales from foreign carriers following visits by Trump. “We have many things, including a big thing is airplane. They (China) have a lot of Boeing planes, and they need parts, and lots of things like that,” Trump told reporters at the White House, when asked what items could the U.S. impose export controls on.
12. Major US online retailers remove listings for millions of prohibited Chinese electronics
The chair of the Federal Communications Commission said on Friday that major U.S. online retail websites have removed several million listings for prohibited Chinese electronics as part of a crackdown by the agency. FCC Chair Brendan Carr said in an interview that the items removed are either on a U.S. list of barred equipment or were not authorized by the agency, including items like home security cameras and smart watches from companies including Huawei, Hangzhou Hikvision, ZTE and Dahua Technology Company. Carr said companies are putting new processes in place to prevent future prohibited items as a result of FCC oversight. “We’re going to keep our efforts up,” Carr said.
13. Trump reaches deal with AstraZeneca to lower U.S. drug prices
The Trump administration and AstraZeneca announced Friday they have reached an agreement for the U.K.-based pharmaceutical giant to cut drug prices in the U.S. The deal with AstraZeneca follows a similar pact with U.S. drugmaker Pfizer, which was announced late last month. AstraZeneca will agree to sell drugs directly to Medicaid patients at the lowest price offered in other developed countries, or what Trump calls “most-favoured nation” pricing, on a coming government website called TrumpRx.gov. AstraZeneca’s primary care medications will be available on the site starting early next year, and the company will offer new prescription medications at most-favoured nation pricing, said Centres for Medicare & Medicaid Services Administrator Mehmet Oz. AstraZeneca CEO Pascal Soriot also said the company will be exempt from pharmaceutical sector tariffs as part of the agreement. Trump has said he aims to strike pricing deals with other major drugmakers in the weeks ahead.
14. India’s Modi meets Qualcomm CEO; discusses AI and innovation
Indian Prime Minister Narendra Modi met Cristiano Amon, President and CEO of Qualcomm, Modi’s office said in a statement on Saturday. “Great to see Qualcomm’s commitment towards India’s semiconductor and AI missions,” Modi said in a post on X. On Friday, China initiated an investigation into the U.S. semiconductor manufacturer over its acquisition of Israel’s Autotalks, China’s market regulator said. China’s State Administration for Market Regulation said the probe would look at whether Qualcomm violated China’s antitrust law by not lawfully declaring some details in its acquisition of the Israeli chip designer.