Futures higher, iPhone 17 sales data, Kering-L’Oreal deal - what’s moving markets

Published 20/10/2025, 08:56
Updated 20/10/2025, 13:46
© Reuters

Investing.com - U.S. stock futures edge higher, boosted in part by hopes for a detente in a renewed trade conflict between the United States and China. Elsewhere, new data shows that Apple’s iPhone 17 series has outperformed its predecessor by 14% during the first 10 days of availability in the U.S. and China, while Gucci-owner Kering unveils a 4-billion euro deal to sell its beauty business to L’Oreal.

1. Futures point higher

Stock futures indicated a positive opening for Wall Street on Monday, as investors assessed signs of easing in trade tensions between the U.S. and China and prepared for a week filled with key corporate earnings.

By 03:28 ET (07:28 GMT), the Dow futures contract had gained 176 points, or 0.4%, S&P 500 futures had ticked up by 30 points, or 0.5%, and Nasdaq 100 futures had risen by 139 points, or 0.6%.

The main averages all advanced to end the prior trading week. President Donald Trump suggested that his proposed triple-digit tariffs on China were not sustainable, even as he hit out at Beijing for recently ratcheting up their ongoing trade fight by expanding controls over crucial rare earth exports.

Trump also confirmed that a meeting later this month with Chinese counterpart Xi Jinping in South Korea will go ahead, adding in a television interview that the U.S. is "going to be fine with China."

Treasury Secretary Scott Bessent later said he expects to meet with Chinese Vice Premier He Lifeng this week in a bid to prevent an escalation of the levies. Chinese state news sources noted that He and Bessent held "constructive discussions" and had agreed to conduct fresh trade discussions as soon as possible.

Still, tariff threats seem to remain a key policy tool for the White House. Trump has vowed to keep "massive" tariffs on India in place until it stops importing Russian oil and flagged that he will increase duties on Colombia over a prolonged drug trade feud.

Apart from the levies, traders will be keeping tabs this week on corporate earnings from Tesla and Netflix, as well as a U.S. consumer price report that has been delayed by a federal government shutdown.

2. Apple iPhone 17 sales outperform predecessor - Counterpoint data

Apple’s iPhone 17 series has outperformed its predecessor by 14% during the first 10 days of availability in the United States and China, according to data released Monday by Counterpoint Research.

The base model iPhone 17 has been the primary driver of this growth, with sales up nearly one-third compared to the iPhone 16 base model. Chinese consumers have shown particular enthusiasm for the entry-level device, with unit sales in China nearly doubling compared to last year’s equivalent model.

Counterpoint Senior Analyst Mengmeng Zhang attributed the strong performance in China to the base model’s value proposition. "The base model iPhone 17 is very compelling to consumers, offering great value for money," Zhang said, noting that it offers "a better chip, improved display, higher base storage, selfie camera upgrade – all for the same price as last year’s iPhone 16."

In the United States, the iPhone 17 Pro Max has emerged as the standout performer through the first two weekends of availability. This trend has been fueled by major carriers increasing maximum subsidies by 10%, reflecting what Counterpoint describes as a strategic shift toward ultra-premium customer segments.

3. Kering , L’Oreal announce 4-billion euro beauty and wellness deal

Kering has announced a deal to sell its House of Creed cologne-making unit to L’Oreal as part of a broader deal worth 4 billion euros in cash.

Under the agreement, the group will also license its fragrance rights for brands like Gucci and Balenciaga to L’Oreal. Tipped to start in the first half of 2026, pending regulatory approval, the transaction will see L’Oreal have exclusive rights to create, develop and distribute beauty products for these labels, as well as Bottega Veneta, for 50 years.

In a statement, the firms said they had also created a 50/50 joint venture to explore new business opportunities "at the intersection of luxury, wellness, and longevity."

The move comes as new Kering CEO Luca de Meo pushes to refortify the French company, which has been grappling with tepid in sales in China and the United States as well as weak wholesale demand.

"This partnership allows us to focus on what defines us best: the creative power and desirability of our Houses,” de Meo said.

Shares of Kering were last trading higher by more than 4% in early European trading, while L’Oreal had inched up by 0.9%.

4. China’s economy grows at slowest pace in two years

China’s economy grew slightly more than expected in the third quarter of 2025, but at its slowest pace in a year amid persistent headwinds from rampant disinflation and U.S. trade tensions.

Gross domestic product grew 4.8% year-on-year in the three months to September 30, government data showed on Monday. The print was slightly above expectations of 4.7% but slowed from the 5.2% rise seen in the prior quarter.

On an annualized basis, growth in the world’s second-largest economy was also at its slowest since the third quarter of last year.

GDP grew 1.1% quarter-on-quarter, above expectations of 0.8%.

The reading brought China’s year-to-date GDP to 5.2%, down slightly from the 5.3% seen in the prior quarter but still above Beijing’s 5% annual target.

5. Gold steadies

Gold prices steadied on Monday, recouping a measure of recent losses and keeping recent record highs close as markets digested some conciliatory comments from U.S. officials on a trade conflict with China.

Spot gold rose 0.2% to $4,257.09 an ounce, while gold futures for December rose 1.4% to $4,270.69/oz by 03:54 ET. Spot gold hit a peak of $4,379.44/oz last week.

The yellow metal tumbled from record highs last week after Trump raised doubts over a prolonged trade war with China, while also stating that upcoming talks with Beijing remained on track.

This appeared to have taken some sheen off of gold’s safe-haven appeal, which has partly driven a recent rally in bullion.

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