Overview

• After threatening 100% tariffs and new software export curbs on Friday, President Donald Trump struck a softer tone, saying the United States does not want to hurt China.
• Bessent described a significant de‑escalation, said talks would continue in Washington this week, and indicated the tariff hike “does not need to happen.”
• China’s September trade beat forecasts, with exports up 8.3% and imports up 7.4%, even as Beijing’s expanded controls on rare earths remain a flashpoint.
• Wall Street recovered part of Friday’s losses (Dow +1.29%, S&P 500 +1.56%, Nasdaq +2.21%), while the Brazilian real strengthened and the Ibovespa rose 0.78%.
• With IMF and World Bank meetings underway, policymakers are also warning that stretched, AI‑driven equity valuations could heighten financial‑stability risks.