Traders Cheer as Tariffs and Fed Cuts Take Center Stage

U. S. Trade Policy and Interest Rate Cuts

• Trade Policy Shift: Traders anticipate a potential shift in U. S. trade policy.
• Tariff Battle: Investors are happy at the idea that President Trump might lose his tariff battle.
• Supreme Court Ruling: If the Supreme Court rules Trump's tariffs illegal, it could boost stock markets.
• Interest Rate Cut: Investors are confident the Federal Reserve will continue its interest rate-cutting program.

Japan's Political Coalition Boosts Market

• Nikkei 225 Surge: The Nikkei 225 index surged by 3. 37%.
• Political Coalition: A new political coalition formed, paving the way for Sanae Takaichi to become Japan's first female prime minister.
• Investor Confidence: This political development has boosted investor confidence in Japan's market.

China's Resilient Economy

• GDP Growth: China's economy showed resilience with a GDP growth of 4. 8% in the third quarter.
• CSI 300 Index: The CSI 300 index rose by 0. 53%.
• Tariff Threats: Investors believe China is not badly affected by Trump's tariff threats.
• Rare Earth Minerals: U. S. dependence on China's rare earth minerals makes tariffs unlikely.
• Tariff Probability: Chances of tariffs by November are now just 7%, according to Polymarket.

European Markets and Fed Speculations

• Stoxx 600 Index: The Stoxx 600 index was up by 0. 63%.
• FTSE 100 Index: The U. K. 's FTSE 100 index rose by 0. 36%.
• CPI Data: The upcoming release of the Consumer Price Index (CPI) data for September is expected to support a 0. 25% rate cut by the Fed next week.
• December Rate Cut Speculations: Some investors speculate about a larger 0. 50% cut in December, although this seems less likely.