- European equities rebounded as miners gained on rising gold, silver, and copper prices.
- Trump and JD Vance signaled openness to talks after Beijing’s rare earth export curbs.
- The dollar steadied near 99 while gold set a new high amid policy and shutdown concerns.
US and Chinese officials have struck a more conciliatory tone after days of threats that rattled global markets. The shift eased some of the pressure triggered by Beijing’s export restrictions on rare earth minerals and Washington’s plan for sweeping tariffs. Early gains in US futures and European equities reflected that adjustment, though the initial lift has shown signs of fading.
European Gains Follow Commodity Upswing
European indices opened higher on Monday, following steep losses at the end of last week. London’s FTSE 100 rose alongside mining stocks, with Fresnillo advancing as gold and silver prices extended their climb.
Anglo American and Antofagasta also gained, tracking a rebound in copper. The move followed Chinese trade data showing exports up 8.3% and imports up 7.4%, both above forecasts.
That momentum offered a brief offset to Friday’s heavy sell-off. However, the tone remained cautious as investors assessed whether the policy shift from Washington would hold. The early rebound faded in some sectors, reflecting uncertainty about how long the pause in rhetoric might last.
Rare Earths at Center of Dispute
The renewed stress began when Beijing imposed new export rules on rare earth minerals. Those materials are central to defense systems and electronics. China controls 70% of global output and processes roughly 90% of supply. Washington responded with a 100% tariff threat, set to take effect on November 1 unless talks change course.
Donald Trump posted on Truth Social that the dispute would ease, saying relations “will all be fine.” He also emphasized cooperation with President Xi Jinping. Vice President JD Vance echoed the tone, stating the United States would negotiate if Beijing showed flexibility.
Beijing’s Commerce Ministry warned it would answer any trade escalation, stating it did not seek confrontation but would not back down. It also urged direct talks rather than public threats.
Dollar Stabilizes After Sharp Slide
The dollar index steadied near 99 on Monday, recovering slightly after a 0.5% drop on Friday. The reversal followed Trump’s remarks de-emphasizing immediate tariff action. The yen weakened as traders reassessed the leadership outlook in Japan after Komeito exited the ruling coalition. Meanwhile, the euro held recent gains after France announced its new cabinet lineup.
Gold continued to climb, reaching another record high. Analysts have linked the increase to concern over US policy stability and ongoing uncertainty around trade. The metal’s rise has coincided with a government shutdown entering a third week and wider efforts by the BRICS bloc to shift away from dollar-based systems.
