Asian Stocks Rally on Trump-Xi Meeting; CPI In Focus Today

The EUR/USD pair ended the session with minor gains on Thursday, as markets awaited the release of September’s U.S. inflation figures.

Market activity remained subdued amid a light economic calendar and cautious sentiment ahead of Friday’s Consumer Price Index (CPI) report. In the United States, Existing Home Sales for September exceeded expectations on a month-over-month basis, providing a minor boost to the greenback.

Meanwhile, the White House confirmed that President Donald Trump will meet Chinese President Xi Jinping on Thursday in South Korea. Before that, he is set to meet Japan’s new Prime Minister, Takaichi, on Tuesday, followed by talks with South Korea’s President on Wednesday.

Despite the headline news, EUR/USD showed limited reaction, as investors focused on U.S. trade rhetoric toward China and the ongoing government shutdown, now in its twenty-third day. The upcoming CPI data is expected to show both headline and core inflation rising above 3%, a figure that could influence the Federal Reserve’s next policy move.

In Europe, Consumer Confidence for October improved slightly to -14.2, up from -14.9 previously, reflecting modest optimism despite persistent economic challenges.

Comments from European Central Bank officials highlighted diverging views on policy direction. ECB’s Kazaks suggested that the next move “could as easily be a hike as a cut,” while Villeroy maintained that a cut remains more likely. Kocher noted an equal probability of either outcome, reflecting uncertainty within the Governing Council.

Gold prices climbed nearly 1% on Thursday, snapping a two-session losing streak as renewed geopolitical risks boosted demand for safe-haven assets and investors awaited key U.S. inflation data due Friday.

Investor caution deepened after U.S. President Donald Trump imposed Ukraine-related sanctions on Russian energy firms Lukoil and Rosneft, marking the first such measures of his second term. The administration is also reportedly weighing restrictions on software-driven exports to China, in response to Beijing’s recent limits on rare-earth exports.

Markets now turn to Friday’s U.S. Consumer Price Index (CPI) report, seen as a key gauge for the Federal Reserve’s policy outlook ahead of next week’s meeting. Economists expect core inflation to remain steady at 3.1% in September.

Investors have largely priced in a 25-basis-point rate cut, with an additional reduction expected by December. Lower interest rates typically benefit gold, a non-yielding asset, by reducing the opportunity cost of holding it.

Oil prices jumped on Thursday, reaching their highest levels in two weeks after the United States imposed sanctions on Russian energy majors Rosneft and Lukoil over Moscow’s ongoing war in Ukraine. The move prompted refiners in China and India—two of Russia’s largest buyers—to consider cutting their imports of Russian crude.

The announcement of sanctions by the U.S. on Rosneft and Lukoil is a major escalation in targeting Russia’s energy sector and could be a big enough shock to flip the global oil market into deficit next year.

Moreover, the new sanctions could force Chinese and Indian refineries to seek alternative suppliers to avoid being cut off from the Western banking system.

Kuwait’s oil minister said the Organization of the Petroleum Exporting Countries (OPEC) stands ready to offset any supply disruptions by adjusting output cuts if needed. However, Russian President Vladimir Putin downplayed the move’s impact, saying it would take time for global markets to replace Russian supply.

The U.S. government reiterated that it is prepared to take additional action and called on Moscow to agree immediately to a ceasefire in Ukraine.

The US 500 closed higher on Thursday, led by technology shares, as easing U.S.-China trade tensions lifted market sentiment. Gains came after the White House confirmed a meeting between President Donald Trump and Chinese President Xi Jinping later this month.

Market optimism improved after White House Press Secretary Karoline Leavitt confirmed that Trump and Xi will meet on October 30, easing fears of a renewed trade war between the world’s two largest economies.

Tesla  shares slipped after the company reported mixed quarterly results. While revenue hit a record $28.1 billion, narrowly beating expectations, net income dropped 37% amid rising research, development, and tariff-related costs, and as the EV maker braces for weaker U.S. demand following the expiration of federal tax credits.

IBM shares also fell, as software revenue growth missed estimates, even though the company posted better-than-expected third-quarter earnings and raised its full-year guidance, citing continued AI-driven momentum.

Investors awaited Intel’s quarterly results, scheduled after the closing bell. The chipmaker was expected to report flat earnings for the third quarter, with sales down 1.2% to $13.12 billion, weighed by weakness in its data center and AI segments. I

Broader Market Highlights

American Airlines rose after reporting better-than-expected quarterly results, with smaller-than-anticipated losses.

In a separate development, President Trump announced sanctions on Russia’s largest oil producers, Lukoil and Rosneft, citing Moscow’s “lack of serious commitment to a peace process” in Ukraine.