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investingLive European markets wrap: Dollar gains fade, China expands rare earth curbs | investingLive

Headlines:

Markets:

  • AUD leads, GBP lags on the day
  • European equities mixed; S&P 500 futures flat
  • US 10-year yields down 0.6 bps to 4.125%
  • Gold up 0.1% to $4,041.95
  • WTI crude oil down 0.4% to $62.30
  • Bitcoin down 0.1% to $122,812

With the US government shutdown still persisting, markets are still largely left to their own devices in trading this week. And amid a lack of key economic data as well from Europe today, there weren’t too many meaningful headlines.

The one that stands out is arguably China sending a warning message to the US as they announce more curbs on rare earth exports. This comes ahead of a meeting between Xi and Trump for later this month in South Korea.

It’s not one that is reverberating all too much but definitely something to be mindful of as it sets the tone for what kind of line China wants to draw heading into any talks.

In the FX space, the dollar was bid early on in the session with USD/JPY even moving above 153.00 for a brief period. However, that all fizzled out with New York Fed president Williams remarking that he would back more rate cuts by year-end. USD/JPY dropped afterwards and is now trading flat at 152.67 on the day.

Similarly, EUR/USD also moved back up to 1.1620 levels now – also keeping flattish – after coming close to a test of 1.1600 earlier. Still, the pair is not out of danger just yet with a break under its 100-day moving average one to watch.

Besides that, changes were light elsewhere with USD/CHF down 0.1% now to 0.8007 and AUD/USD back up by 0.2% to 0.6600 after having dropped to 0.6570 earlier in the day.

In other markets, European stocks are keeping more mixed with the DAX pushing to fresh record highs while the CAC 40 is trying to keep with the rebound after the drop from earlier in the week. The peripheries are lagging though with Spanish and Italian stocks falling on the day. As for US futures, things are more muted with levels flat ahead of the Wall Street open later.

In the commodities space, gold is for once not stealing the spotlight today but it has been an impressive recovery after falling to near $4,000 earlier in Asia trading. Price is now trading back up to $4,041 as buyers look to keep the run going with silver on the verge of $50 as well.