Financial Markets Daily Report13 octubre 2025
Investor risk appetite soured and global risk assets fell after President Trump threatened a “massive” tariff hike on Chinese exports, citing “hostile” export controls over rare earths. Equity indices declined across the Atlantic, with the tech-focused Nasdaq among the worst performers. Trump’s threats were watered down over the weekend.
US sovereign yields fell, driven by Trump’s comments. On the macro front, US consumer sentiment remained steady in October despite persistent labour market concerns, and Fed Governor Waller reinforced expectations of gradual rate cuts. European yields also declined, while peripheral spreads were broadly stable. ECB’s Villeroy de Galhau stressed the impact of French political uncertainty on confidence and growth.
In FX, Trump’s remarks weighed on the USD, which depreciated against the euro and the yen. In commodities, Brent fell on renewed concerns over global demand, while gold advanced on rising instability.