US-China Trade Talks Spark Optimism | GO Markets Week Ahead
GO Markets
27/10/2025
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President Trump and President Xi have scheduled talks for later this week in South Korea, marking their first face-to-face meeting since Trump's return to office. After two weeks of heightened tension, a preliminary framework was established that effectively takes the threatened 100% tariffs off the table.
Treasury Secretary Scott Bessent characterised the framework agreement as being "very successful." This diplomatic progress has created some optimism across markets that the world's two largest economies can avoid the deeper trade conflict that was threatening to destabilise supply chains and accelerate inflation.
Copper Tests Key Resistance
Following a dramatic Q3 that saw prices surge to a record high of $5.81 in July, before plummeting to $4.37 by early August, copper has been steadily recovering as supply fundamentals reassert themselves.
Since breaking through $5.00 in early October, prices have continued to gain strength, rising to $5.11 on October 9. Today's gap higher on trade talk optimism pushed prices back to this key technical level that has proven resistant since March.
A confirmed breakout above $5.24 could open the door to $5.50 and potentially higher, making copper worth watching closely this week as both supply constraints and improving US-China trade relations provide potential tailwinds.
Fed Rate Decision This Week
The Federal Reserve will meet this Wednesday for the October 28-29 policy meeting, with a quarter-point rate cut seemingly fully priced in by markets. Market pricing indicates a 100% probability of an October cut and an 88% chance of another reduction in December.
The key moment will come after the meeting during Fed Chair Powell's press conference — particularly on what he has to say about future rate policy and how the Fed views the balance of risks between inflation and employment.
Market Insights
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Key economic events
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Times in AESDT (GMT+11)
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