Paul Tudor Jones sees potential market rally after late October
Investing.com - Futures linked to Canada’s main stock exchange ticked higher on Tuesday, as investors assessed ongoing trade tensions between the U.S. and China.
S&P/TSX 60 index standard futures had risen by 4 points, or 0.2%, by 06:17 ET (10:17 GMT), with traders returning after markets were closed in Canada on Monday for the country’s Thanksgiving Day holiday.
During the previous session on Friday, the S&P/TSX composite index notched its sharpest fall in six months.
U.S. President Donald Trump had initially threatened to raise tariffs on China to triple-digits over Beijing’s expansion of rare earths export controls, leading to a equities in slump on Friday, although he later appeared to rein in this statement.
U.S. Treasury Secretary Scott Bessent has also reiterated that a much-anticipated meeting between Trump and Chinese counterpart Xi Jinping in South Korea later this month remains on track.
Despite signs of a more conciliatory stance from the White House, some concerns have continued to swirl around the intractable nature of the trade spat between the world’s two largest economies.
China has announced sanctions on five U.S.-connected subsidiaries of South Korean shipbuilder Hanwha Ocean, and Beijing and Washington will impose additional port fees on ocean shipping groups that transport everything from children’s toys to crude oil.
Bank earnings ahead
Against this backdrop, U.S. stock futures slid, pointing to some reversal in gains logged in the prior session, as markets also prepared for an upcoming slate of earnings from Wall Street banking giants and comments from Federal Reserve policymakers.
By 05:44 ET (09:44 GMT), the S&P 500 futures contract had dropped by 55 points, or 0.8%, Nasdaq futures had slipped by 263 points, or 1.1%, and Dow futures had fallen by 231 points, or 0.5%.
Prior to the opening bell, JPMorgan Chase -- the largest U.S. lender -- will post results, along with peers such as Wells Fargo, Goldman Sachs and Citigroup. Rivals Bank of America and Morgan Stanley are later due to post their earnings on Wednesday.
The banks are anticipated to deliver mostly solid earnings, powered by a resilient U.S. economy that has supporting borrowing activity, buoying consumer and commercial lending divisions. Dealmaking has picked up as well following a stagnant period in the wake of Trump’s sweeping tariff announcements earlier this year, thanks to a mix of easing regulations and hopes for lower interest rates.
Still, observers will likely be keeping tabs on any remarks around the wider outlook, particularly after JPMorgan CEO Jamie Dimon warned of a correction in stocks within the next six months to two years, citing uncertainty around geopolitics, fiscal spending, and global remilitarization.
Powell speech in focus
Meanwhile, traders will likely be monitoring a speech by Fed Chair Jerome Powell at the National Association for Business Economics annual meeting.
Powell is seen "lament[ing]" a dearth of key economic data during an ongoing U.S. government shutdown, which has delayed the publication of several indicators the Fed uses to calibrate monetary policy, analysts at Vital Knowledge said in a note. Media reports have said furloughed government workers have been recalled to get out the September consumer price index, a crucial inflation gauge, but it is unclear when other postponed data points will arrive.
At the moment, markets currently expect the central bank to cut interest rates by 25 basis points at its upcoming gathering on October 28-29, CME’s FedWatch Tool has shown. Last month, the Fed slashed borrowing costs by a similar magnitude, restarting an easing cycle partly aimed at supporting a slowing employment picture.
The shutdown, meanwhile, does not seem to be closing in an imminent resolution, even with the Senate scheduled to come back into session later on Tuesday.
Gold’s touches new all-time peak
Gold prices climbed to a fresh record high above $4,100 per ounce, as Fed rate cut bets and renewed international trade woes spurred a rush into safe-haven assets, while silver also rallied to fresh peaks.
Spot gold traded 0.4% higher at $4,125.35 per ounce by 03:41 ET. U.S. gold futures inched up by 0.1% to $4,138.40/oz.
The yellow metal has jumped by over 50% so far this year, and exceeded the $4,100 level for the first time ever on Monday.
Oil slips
Oil prices dropped, reversing earlier gains, as concerns swirled around whether the latest flare-up in trade tensions between the U.S. and China will dent global crude demand.
Elsewhere, global oil supply is anticipated to grow at a faster pace than previously estimated this year and a surplus is tipped to expand even further in 2026 thanks in part to increased OPEC+ output and "subdued" demand, according to a monthly report from the International Energy Agency.
In its Oil Market Report for October, the IEA said that world oil supply is on pace to rise by 3 million barrels per day to 106.1 million bpd in 2025. It had previously forecast a jump of 2.7 million bpd. Next year, supply is seen growing by a further 2.4 mbpd, the IEA added.
Oil supply around the world in September came in at 5.6 million bpd versus a year earlier, much of it stemming from output from the Organization of the Petroleum Exporting Countries and its allies. The producer group, known as OPEC+, has been unwinding some output reductions more rapidly than it had previously planned, raising worries over a global supply glut that has broadly weighed on oil prices year-to-date.
Brent crude futures slipped by 2.2% to $61.94 per barrel by 05:39 ET, while U.S. West Texas Intermediate fell 2.3% to $58.14 a barrel.