As the global economy continues to navigate the ongoing pandemic and geopolitical tensions, markets around the world are reacting to new trade demands from the US and rate cut expectations from central banks. In this blog post, we’ll dive into the latest developments and their impact on financial markets.

EU Concerned Over New US Trade Demands
According to Bloomberg sources, the European Union is expressing concern over new trade demands made by the US, which could potentially hollow out the deal struck by US President Trump. The EU has been working hard to finalize the agreement, but these latest developments could pose a challenge to their efforts.

European Bourses Mixed, ASML Weighs on AEX
Despite the overall firmness of European bourses, shares of ASML Holding NV (-1.7%) are weighing on the AEX index. US equity futures are also modestly higher, suggesting a positive start to the trading week.

USD Rallies on Weak JPY and NZD
The US dollar continues to rally, boosted by a weak Japanese yen and New Zealand dollar. The Kiwi underperforms after the Reserve Bank of New Zealand delivered a jumbo 50bps cut and left the door open for more rate reductions. This has led to increased expectations of further rate cuts in the coming months, which could further support the USD.

Global Paper Moves Higher, OATs Outperform
As investors seek safe-haven assets, global paper is moving higher, with OATs outperforming. Investors are awaiting the French Prime Minister’s speech later in the day for any clues on the country’s economic policies.

Gold Tops $4,000/oz, Crude Rebounds
Gold prices have topped $4,000/oz, as investors seek safe-haven assets amidst geopolitical tensions. Meanwhile, crude oil is continuing its rebound, with China set to re-enter the market tomorrow. This could lead to increased demand and higher prices for the commodity.

Looking Ahead: NBP Policy Announcements, FOMC Minutes (Sep), Speakers Including BoE’s Pill, ECB’s Elderson & Lagarde, Fed’s Musalem, Barr, Goolsbee & Kashkari, NVIDIA CEO Huang, French PM Lecornu, Supply from US

As markets prepare for the upcoming week, there are several key events to keep an eye on. These include policy announcements from the Bank of England, Federal Reserve, and European Central Bank, as well as the release of FOMC minutes from September. In addition, a number of high-profile speakers will be taking the stage, including NVIDIA CEO Huang and French Prime Minister Lecornu. All of these events could have significant implications for financial markets, so stay tuned for updates.