U.S. Indexes rallied on Monday, paring some of the downside seen on Friday. U.S. President Trump announced China will face a 100% tariff from November 1st, late on Friday, but later suggested that everything will be “fine”. Treasury Secretary Bessent yesterday said the 100% tariffs do not have to happen and that things are still in place for a Trump meeting with Chinese President Xi. The toning down of aggression on China trade from Trump had boosted sentiment and largely reversed a lot of the price action seen on Friday. Outperformance was seen in the NASDAQ and Russell, with tech gains buoying the former following a slew of deals, namely the OpenAI and Broadcom (AVGO) strategic partnership. In FX, the Dollar was bid but Antipodeans outperformed on hopes of US/China tensions easing, paring some of the underperformance seen on Friday, while haven FX lagged but Gold went on to print a fresh All-Time-High above $4100. Oil prices settled in the green due to risk-on trade, while Treasury trade was quiet with cash trade closed on account of Columbus Day, with futures settling flat. There was no data yesterday, but Fed speak saw Paulson talk on the economy and policy for the first time since she became President of the Philly Fed, where she took a neutral/dovish tone (recap of comments below). On geopolitics, the Middle East peace deal began, with seemingly no hitch, as Hamas released hostages, although Israel Defense Minister Katz condemned Hamas’ announcement about handing over four hostages’ bodies as a “failure to meet commitments” – Hamas told mediators it does not know the location of some of the other 24. Fed Member Paulson the Philadelphia Fed President spoke for the first time since becoming President of the regional bank, where she ultimately took a dovish/neutral tone. She said she is aligned with the median dot plot for the rate view by year-end but noted that policy should be focused on balancing risks to maximum employment and price stability. She called for gradual rate cuts over this year and into next, noting that gradual cuts should keep the jobs market close to full employment. She said the 25 basis points cut in September made sense, and she sees policy as modestly restrictive. Paulson also echoed arguments from Waller and Bowman that policy should look through tariff effects, as the price impacts are not persistent, but she shared the view of Goolsbee that strength in services prices bears watching. On the labour market, she suggested momentum is to the downside, noting that tariff inflation impact is smaller than expected so far. Paulson suspects the breakeven rate is lower than 75k per month. Elsewhere, Oil closed higher by 1.38% while as mentioned above Gold ended Monday’s session with a gain of 2.2%.
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For anyone following my Platinum Service it was made 610 points yesterday and is now ahead by 2025 points for October after closing September with a gain of 3774 points after ending August with a gain of 3362 points after closing July with a gain of 3753 points after closing June with a gain of 3530 points, having closed May with a gain of 3606 points, after closing April with a gain of 7685 points after closing March with a gain of 2254 points while closing February with a gain of 4180 points. January ended with a gain of 2768 points while 1997 points were gained in December. October ended with a gain of 2179 points, after closing September with a gain of 4402 points, following a loss of 301 points in August. July gained 1908 points while June saw a gain of 2074 points. The Platinum Service made a record 9619 points in October 2022. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 2300 points. I have a YouTube Channel which contains recent interviews I have given This can be viewed by clicking HERE Please subscribe to this for new interview notification
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