Morning Note: A Round-up of Global Financial Market News.
Market News
Donald Trump said US officials had “very good” talks with Iranian envoys, reviving diplomacy hopes hours after he threatened to “annihilate” Iran at the UN. Tehran said it used the Qatar-mediated talks to relay its demands, according to state-run IRNA. Meanwhile, Saudi Arabia is in the early stages of restarting its East-West oil pipeline following drone attacks earlier this month, aiming to restore exports via the line. Easing supply concerns pushed Brent Crude below $100 a barrel, while WTI (the US price marker) fell 6% to below $90 a barrel.
Treasury futures and Asian bonds rose on easing inflation concerns, although Richmond Fed President Barkin said it could take time for inflationary shocks to wane, stopping short of signalling further tightening. The yield on the 10-year US Treasury is just below 5%, while gold slipped to $4,320 an ounce.
President Trump rejected calls for an international agreement to put guardrails around AI development, dismissing it as a “globalist scheme” to control the technology.
Xi Jinping makes his first White House visit in a decade. Investors are focused on the fate of the trade truce expiring November 10, potential deals on agriculture, energy, and AI, and any signals on Strait of Hormuz cooperation.
US equities made small gains last night – S&P 500 (flat); Nasdaq (+0.5%) – helped by tech gains. Financials sold off as Meta’s Muse agent, which can book appointments, place orders, and manage communications autonomously, increased fears that AI agents will erode consumer inertia-driven revenue.
In Asia this morning, markets were mixed: Nikkei 225 (holiday); Hang Seng (-1.0%); Shanghai Composite (-0.3%); Kospi (+0.9%).
The FTSE 100 is currently 0.4% higher at 10,738, while Sterling trades at $1.3310 and €1.1650. Diageo named Joanne Wilson, currently CFO of WPP, as its CFO, replacing Nik Jhangiani. Wilson, who worked with Diageo’s CEO Dave Lewis at Tesco, will take over some time in 2027, with Jhangiani to stay in his role to ensure a smooth handover. The shares are little changed in early trading this morning.
The cross-party Treasury Committee called on the OBR to introduce a new 10-year fiscal forecast ahead of next month's budget, urging ministers to think beyond the electoral horizon.
Source: Bloomberg
