Global equities held near record highs as investors waited for fresh catalysts from the US–China summit. The MSCI All Country World Index was little changed after closing at a record, while US and European futures edged higher. Mainland Chinese shares underperformed, with the Shanghai Composite down 0.9%, even as the offshore yuan extended its winning streak. The meeting between President Trump and President Xi began on a constructive tone, though comments around Taiwan will be watched closely.
The AI trade continued to support sentiment, with Cisco jumping after a stronger sales outlook and reports that the US cleared sales of high-end H200 chips to selected Chinese firms. That helped offset renewed inflation concerns after US producer prices rose faster than expected, reinforcing market expectations that the Fed may need to raise rates next year. Kevin Warsh was also confirmed as Fed Chair. Treasuries were steady after recent weakness, with the US 10-year yield around 4.47%, while Japanese government bonds sold off and the 30-year yield rose to its highest since 1999. Oil held firm near recent highs, and the dollar was little changed after three days of gains.
The political headwinds for Keir Starmer have not eased. Angela Rayner is preparing a leadership bid after being cleared by HMRC of deliberate wrongdoing in the tax probe that cost her the deputy leadership race last year. Wes Streeting also reportedly held a brief meeting with the PM yesterday and is expected to launch his own challenge today. As markets contemplate the prospect of the UK having its seventh Prime Minister in 10 years, UK 10-year yields have risen to their highest levels since 2008.
• S&P 500 futures +0.2%
• US 10-year yield unchanged ~4.47%
• Bitcoin +0.1% to $79,757
• Gold +0.2% to $4,697
• WTI +0.5% to $101.54
