Russian President Vladimir Putin and North Korean leader Kim Jong Un held significant strategic talks in Beijing on Wednesday, where they praised their deepening military partnership while Chinese President Xi Jinping hosted commemorations marking the 80th anniversary of World War II's end. Russia's state nuclear corporation, Rosatom, announced it will help China overtake the United States as the world's largest nuclear power producer, with China aiming to exceed 100 gigawatts of installed nuclear capacity compared to the U.S.'s current 97 gigawatts. Meanwhile, China firmly rejected President Trump's call for Beijing to join nuclear disarmament talks with the U.S. and Russia, stating it was "neither reasonable nor realistic" given the vast disparity in nuclear arsenals between the countries. This realignment between Russia, China, and North Korea has strengthened diplomatic relationships significantly, with North Korea having deployed approximately 15,000 soldiers to support Russia's war in Ukraine while receiving advanced Russian military technology in return. This trilateral cooperation represents a clear challenge to Western influence, with analysts predicting that joint military exercises between Russia, China, and North Korea appear "nearly inevitable" as the three nations solidify their anti-Western alliance.
EQUITY
Wall Street opened the month in red due to a federal appeals court ruling that most of President Trump’s tariffs are illegal, though they remain in effect until October 14 pending a Supreme Court appeal. All major indexes closed lower, with the S&P 500 approaching key support levels near 6,238, a buying opportunity for long-term investors. Analysts suggest the pullback may be a temporary pause in a continuing bull market that is running on Fed rate cuts and long-term earnings growth, especially in AI-driven sectors.
GOLD
Gold held steady after smashing its previous record highs with imminent Federal Reserve rate cuts and heightened safe-haven demand from political and economic insecurity. Rising long-term bond yields worldwide, particularly the record jump in Japan's 30-year government debt yield, further reinforce gold's appeal as a hedge. Consequently, analysts have significantly raised near-term price forecasts, with targets now extending to $3,650–$3,900 per ounce as sustained momentum above $3,500 signals strong strategic investment demand.
OIL
Oil prices held steady at one-month highs with new U.S. sanctions targeting a network smuggling Iranian oil disguised as Iraqi crude, reducing supply. The benchmarks held firm with declining U.S. crude inventories even in times where the market expected the OPEC+ meeting to output new production quotas. Six straight months of manufacturing contraction from tariffs continue to weigh on demand, but strong GDP growth and China’s return to manufacturing expansion have largely offset the impact.
CURRENCY
Offshore yuan has held its price near a 10-month high since last Thursday's surge, with analysts expecting the yuan to remain range-bound in the short term due to a narrowing yield gap between Chinese and U.S. bonds and growing global demand for stable assets. Meanwhile, the British pound and Japanese yen weakened due to concerns over rising government debt and political instability, lifting the U.S. dollar slightly.
