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Euro (EUR) found bids as French political situation saw another twist and turn while the unexpected flare-up in US-China relations weighed on US Dollar (USD). EUR last seen at 1.1570 levels, OCBC’s FX analysts Frances Cheung and Christopher Wong note.

President Donald Trump on Friday threatened China with a “massive” increase in tariffs in retaliation for Beijing imposing strict controls on rare earths.

The major European stock indices are closing the day marginally higher led by the German DAX with a gain of 0.55%. A snapshot of the closing levels shows:

• German DAX +0.55%
• France’s CAC, +0.07%
• UK’s FTSE 100, +0.18%
• Spain’s Ibex, +0.40%
• Italy’s FTSE, +0.14%

As London/European traders look to end the trading day, the major US indices are also higher helped by the return of hostages and cease-fire in Israel.

• Dow industrial average is up 620 points or 1.36% at 46100
• S&P index is up 99.97 points or 1.53% at 6652.73
• NASDAQ index is up 439 points or 1.90% to 22643.16

The US debt market is closed today in observance of Columbus Day.

In other markets:

• Crude oil is higher by $0.81 and $59.70
• Gold traded to a new high at $4103.02. It is currently trading up $78 or 1.95% at $4096.30
• Silver also reached a new all-time high and is trading up $1.43 or 2.81% and $51.55.
• Bitcon does not have the alternative investment bid. It is currently trading down $600 at $114,480

This article was written by Greg Michalowski at investinglive.com.

Gold (XAU/USD) continues its record-breaking rally on Monday, setting fresh all-time highs around $4,103 as fears of a revived US-China trade war boosts safe-haven demand.

Indices are clawing back losses after Friday’s excitement, with a Broadcom/OpenAI deal providing a basis for optimism, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.

USD/CHF holds firm around 0.8050 on Monday, up 0.80% for the day at the time of writing, as markets digest the latest trade threats from US President Donald Trump toward China.

West Texas Intermediate (WTI) Crude Oil stabilizes on Monday after a bruising week that saw prices tumble to their lowest level since May, briefly touching $57.89 per barrel.

Iraq’s Prime Minister Mohammed Shia Al-Sudani expressed hope the truce would be “sustainable and the beginning of a radical solution to this problem.”

If anyone still harbored hope that this unbearable tariff saga had already reached its climax, such hope was likely extinguished after the US government’s threat late last week to impose tariffs of 100% on imports from China, Commerzbank’s Head of FX and Commodity Research Thu Lan Nguyen notes.

Pres Trump is in Egypt now and is speaking initially on Iran. He says:

• Egypt played a very important role in deal. Calls Egypt Sisi a powerful leader
• Iran will come along
• Iran needs help
• I really wants to make a deal
• Would love to take off Iran sanctions if they talk

On Israel/Hamas:

• Phase 2 talks on Gaza have started

Trump – the Deal Maker – is on stage overseas which is where he gets the most energized.

This article was written by Greg Michalowski at investinglive.com.