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By the end of Friday, the Dow Jones Index (US30) dropped by 1.90% (down -2.77% for the week). The S&P 500 Index (US500) decreased by 2.71% (down -2.69% for the week). The technology index Nasdaq (US100) closed lower by 3.49% (down -3.06% for the week). US stocks fell sharply on Friday, retreating from recent highs after President Donald Trump shocked markets with threats of a “massive” increase in tariffs on Chinese goods and suggested he might cancel an upcoming meeting with Chinese President Xi Jinping. Trump accused China of using rare earth metals to dominate global markets and criticized new export controls adopted by Beijing, which intensified fears of a resurgence in US-China trade tensions. Technology and semiconductor stocks bore the brunt of the decline, with AMD falling 7.8%, Nvidia 5%, and Qualcomm 7.3% following an antitrust investigation in China. The sell-off was further amplified by the ongoing tenth day of the US government shutdown, which led to delayed economic data and heightened market uncertainty.

The Canadian dollar strengthened slightly, trading just below the 1.40 mark against the US dollar, as traders eased expectations for an October rate cut by the Bank of Canada following a stronger-than-expected employment report. Canada’s unemployment rate in September 2025 remained at 7.1%, lower than the forecast of 7.2%, but still at its highest level since August 2021. Meanwhile, employment grew much more than expected, suggesting that labor market slack is not occurring as quickly as previously thought, which could delay the timing of further interest rate cuts.

Bitcoin stabilized around $115,000 on Monday after a sharp drop late last week. US President Donald Trump backed down from his threat to impose massive tariffs on China, stating in a Truth Social post that trade relations with the country “will be fine.” On Friday, Bitcoin fell more than 10% to below $110,000 after Trump warned of an additional 100% tariff on Chinese goods starting November 1. This was in response to Beijing’s new export controls on rare earth minerals, triggering a sell-off across financial markets. China responded over the weekend by promising countermeasures if the US implemented these actions. However, tensions appear to have eased, as officials from both sides made conciliatory statements on Sunday, showing a willingness to resume trade talks ahead of a possible meeting between Trump and Xi later this month.

European stock markets also fell on Friday. Germany’s DAX (DE40) dropped by 1.50% (down -0.48% for the week), France’s CAC 40 (FR40) closed lower by 1.53% (down -1.46% for the week), Spain’s IBEX35 (ES35) fell by 0.69% (down -0.57% for the week), and the UK’s FTSE 100 (UK100) closed at 0.86% on Friday (down -0.67% for the week). European indices also retreated from recent highs. Market sentiment worsened due to renewed US-China trade tensions and weakness in defense stocks following the adoption of a Gaza peace plan. Concurrently, political uncertainty in France kept traders on edge.

WTI crude oil prices fell by 4.2% to reach $58.2 per barrel on Friday, the lowest since May 7, as renewed US-China trade tensions sparked market worries. President Trump threatened a “massive increase” in tariffs on Chinese goods and hinted at canceling an upcoming meeting with Chinese President Xi Jinping, fueling fears that a trade war could slow global economic growth and curb oil demand. The drop was exacerbated by bearish sentiment driven by rising global supply, including increased output from OPEC+ and non-OPEC producers. Easing Middle East tensions, including progress on a Gaza ceasefire, also removed a key risk premium in prices.

The US natural gas prices fell by 4% to $3.10/MMBtu, the lowest level in two weeks. Significant storage inventories and forecasts pressured prices for mild weather, which will limit heating and cooling demand through the end of October. Record-high production earlier this year enabled larger-than-usual injections into storage, resulting in inventories being about 4% above the seasonal average.

Silver jumped more than 2% to above $51 per ounce on Monday, setting a new all-time high, as renewed US-China trade concerns, political instability, and expectations of further US rate cuts spurred demand for safe-haven assets. Broader geopolitical concerns also supported prices, as the ongoing US government shutdown, political turmoil in France, and leadership uncertainty in Japan weighed on sentiment.

Asian markets were mostly down last week. Japan’s Nikkei 225 (JP225) rose by 3.12%, China’s FTSE China A50 (CHA50) dropped by 1.89%, Hong Kong’s Hang Seng (HK50) fell by 3.42%, and Australia’s ASX 200 (AU200) posted a negative result of 0.64% for the past week.

• S&P 500 (US500) 6,552.51 −182.60 (−2.71%)
• Dow Jones (US30) 45,479.60 −878.82 (−1.90%)
• DAX (DE40) 24,241.46 −369.79 (−1.50%)
• FTSE 100 (UK100) 9,427.47 −81.93 (−0.86%)
• USD index 98.85 −0.68 (−0.69%)
   

News feed for: 2025.10.13

• Eurozone Retail Sales (m/m) at 12:00 (GMT+3);
• Eurozone ECB President Lagarde Speaks at 20:00 (GMT+3);
• UK BOE Gov Bailey Speaks at 20:30 (GMT+3).

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