All eyes are on the Beijing summit, which arguably only improved optics more than fundamentals. Donald Trump and Xi Jinping projected a warmer tone, where China framed the talks around “constructive strategic stability", and both sides expressed a desire to prevent trade tensions from escalating. The October trade truce remains intact, with discussions on mechanisms like a “Board of Trade” continuing, though Beijing hinted at increased U.S. agricultural and energy procurements, while corporate leaders pushed for progress on market access and regulatory approvals. What failed to materialise was a true breakthrough, only partial progress on chip access, but not a fully executed or fully bilateral trade agreement. Taiwan, sanctions, and broader geopolitical disputes also remain unresolved, although it is a step in the right direction.

EQUITY

The S&P 500 and Nasdaq post another record high on semiconductor stocks, with Nvidia climbing 4.4% after the White House's approval of H200 chip sales to Chinese firms and Cisco topping the chart at 13.4% to an all-time high after raising revenue guidance and restructuring plans. Dinner-plate-size chip manufacturer Cerebras shares closed 68% higher than its IPO price, raising $6.4 billion and achieving a $100 billion+ valuation backed by a $24.6 billion backlog anchored by a major OpenAI cloud deal.

GOLD

Gold stalled near $4,700 and then slid to $4,650 as hotter US inflation data completely extinguished 2026 Fed cut bets and priced in a mere 30% chance of a year-end hike. The Trump-Xi summit combined with Middle East energy disruptions to sustain intermittent safe-haven flows. India aggressively defended the rupee by doubling gold import duties to 15% and capping duty-free imports at 100kg.

OIL

Brent crude neared $107/barrel, set to close 7% higher this week as the Strait of Hormuz continues to be a red zone and US-Iran ceasefire talks bear no resolution. The IEA warned flows fell 4 million bpd in March-April, a severe undersupply that could last through October even if conflict ends. Trump-Xi talks partly aimed to reopen the strait and boost US oil exports to China, yet vessel seizures show ever-present transit risks.

CURRENCY

The dollar just had its best week in two months after the Fed seemed to back away from hike talk after inflation figures entered dangerous territory. While traders monitor the Trump-Xi meeting, the real story is in the data where energy shocks from the Iran conflict are reigniting pricing power, and markets have swiftly priced out cuts until next year. The yen now stands near intervention territory at 158, sterling weakens under political chaos, and the euro starts to decline.