by Diana Mandia

PARIS (Reuters) – The main European stock markets are expected to rise on Monday at the opening, signs of easing trade tensions between China and the United States stimulating appetite for risk at the start of a week marked by meetings of major central banks and the publication of results of large capitalizations.

According to the first available indications, the Parisian CAC 40 could gain 0.63% at opening.

Futures contracts signal an increase of 0.5% for the Dax in Frankfurt, 0.2% for the FTSE in London and 0.58% for the EuroStoxx 50. The Stoxx 600 is expected to gain 0.47% at the opening.

US President Donald Trump said on Sunday he was confident of reaching a deal with his Chinese counterpart Xi Jinping, whom he is expected to meet in South Korea on Thursday, after senior officials from the two countries reached a preliminary consensus on trade talks.

A trade deal between the two powers could suspend rising U.S. tariffs against Beijing, as well as Chinese controls on rare earth exports, U.S. officials said.

The mere prospect of appeasement between the United States and China, whose tariff war has been rekindled in recent weeks while their trade truce concluded this summer will expire on November 10, was enough to propel Asian stocks to historic levels on Monday, to weigh on gold prices and to push up the prices of raw materials.

“Investors will want to see confirmation that the trade truce is holding and that China’s stimulus measures and reform signals are translating into tangible growth momentum,” said Charu Chanana, analyst at Saxo.

Donald Trump, who also announced a series of agreements on trade and essential minerals with countries in Southeast Asia over the weekend, is due to arrive in Tokyo on Monday, the second stop of his tour, where he will meet the Japanese emperor as well as the newly elected Prime Minister, Sanae Takaichi.

The week is also marked by central bank meetings in the United States, Canada, Japan and the euro zone, as well as the publication of quarterly corporate results, including several of the “Magnificent Seven” in the United States.

In France, deputies will continue to debate the revenue part of the 2026 budget in the hemicycle of the National Assembly, a procedure closely followed by investors, while the Socialist Party has once again threatened to censor the government of Sébastien Lecornu.

VALUES TO FOLLOW: [L8N3W51VS]

A WALL STREET

The three major indices of the New York Stock Exchange again set records at the close on Friday after a lower than expected rise in inflation in September, which reassured investors about the trajectory of interest rates in the United States.

The Dow Jones Industrial index gained 472.51 points, or 1.01%, to 47,207.12 points, crossing the 47,000 mark for the first time.

The S&P 500 rose 0.79% and the Nasdaq Composite advanced 1.15%).

Consumer prices in the United States increased slightly less than expected in September in the United States, which should allow the Federal Reserve (Fed) to maintain the course towards a further reduction in interest rates next week and to decide others in the future.

IN ASIA

The Nikkei index of the Tokyo Stock Exchange exceeded the 50,000 point mark on Monday for the first time and finished with an increase of 2.46%, thus continuing its series of consecutive records thanks to expectations of announcements of significant investments from the new Japanese Prime Minister.

In China, the stock markets benefit from commercial hopes: The composite index of the Shanghai Stock Exchange increases by 1.11% and the CSI 300 of large capitalizations advances by 1.11%.

The Hong Kong Stock Exchange gains 1%.

RATES / EXCHANGES

The yield on ten-year Treasuries rose 4 basis points to 4.0372%, and that of the two-year bond rose 2.3 basis points to 3.5074%.

On the foreign exchange market, the dollar lost 0.08% against a basket of reference currencies, while the euro gained 0.05% to 1.1631 dollars.

OIL

Oil prices edged higher Monday after U.S. and Chinese economic officials outlined the outlines of a trade deal between Washington and Beijing, allaying fears that tariffs and export restrictions between the world’s top two oil consumers could hurt global economic growth.

Brent rose 0.47% to $66.25 per barrel and American light crude (West Texas Intermediate, WTI) rose 0.44% to $61.77.

MAIN ECONOMIC INDICATORS ON THE AGENDA FOR OCTOBER 27:

COUNTRY GMT INDICATOR PERIOD PREVIOUS CONSENSUS

EZ 09:00 Business credit (BCE) September 2.8% 2.9%

FROM 09:00 Ifo October Climate Index 88.00 87.7

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(Written by Diana Mandia)

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