Gold dipped to around $4,340 per ounce on Tuesday but remained close to the fresh record set in the previous session, supported by its safe-haven appeal and expectations of US rate cuts. The ongoing US government shutdown continued to fuel uncertainty, though White House economic adviser Kevin Hassett suggested the impasse could be resolved this week. Investors also monitored US-China trade developments, with Treasury Secretary Scott Bessent set to meet Chinese Vice Premier He Lifeng in Malaysia this week. The meeting between the two officials comes ahead of the planned talks between President Donald Trump and President Xi Jinping. Meanwhile, markets continued to price in a 25 bps rate cut by the Federal Reserve later this month, with another likely in December. Investors now await Friday’s September CPI report for further insight, which was delayed due to the shutdown.

The Japanese yen weakened toward 151 per dollar on Tuesday, falling for the third straight session as investors awaited a parliamentary vote expected to confirm Sanae Takaichi as Japan’s next prime minister. The ruling Liberal Democratic Party secured a coalition with the Japan Innovation Party, with both aiming to advance expansionary fiscal policies and spending reforms. Still, uncertainty lingers over the coalition’s stability and whether Takaichi may pursue more hardline policies. The alliance with Ishin could, however, support a more balanced economic and monetary approach. Meanwhile, Bank of Japan board member Hajime Takata said Monday that the time was ripe for raising interest rates, lending some support to the yen. Investors now turn their focus to next week’s BOJ meeting, where policymakers are widely expected to keep rates unchanged.

WTI crude oil futures dropped to around $56.8 per barrel on Tuesday, extending losses from the previous session, as growing concerns over a global oversupply and uncertainties surrounding US-China trade negotiations kept markets on edge. The volume of crude stored at sea has now climbed to a record high, signaling a deepening imbalance in the market and reinforcing the prevailing bearish outlook. As of the week ending October 17, approximately 1.24 billion barrels of crude and condensate were in transit via tankers, up slightly from the previous week’s revised total of 1.22 billion barrels. Meanwhile, markets are closely watching the upcoming negotiations between US and Chinese officials in Malaysia, seen as a critical precursor to a high-stakes summit between President Donald Trump and President Xi Jinping later this month.

US stock futures were little changed on Tuesday as investors awaited a wave of major earnings reports, with Netflix, Coca-Cola, and General Motors set to release results later in the day. Later this week, attention will turn to earnings from Tesla, Intel, and Procter & Gamble. On Monday, the Dow climbed 1.12%, the S&P 500 rose 1.07%, and the Nasdaq gained 1.37%, lifted by a 3.9% rally in Apple to a record high after reports showed iPhone 17 sales surpassed those of the iPhone 16 in both the US and China. Bank stocks also strengthened as credit market concerns eased. Adding to the upbeat mood, President Donald Trump said he expects to reach a “fair deal” with China’s President Xi Jinping during their upcoming meeting in South Korea, tempering trade tensions. Still, the ongoing government shutdown continued to cast uncertainty over the broader economic outlook.

Canada’s industrial producer prices rose 0.8% month-over-month in September, marking the fourth consecutive monthly increase, following a downwardly revised 0.2% gain in August. The rise was driven by primary non-ferrous metals (+5.9%), with unwrought silver and silver alloys up 12.3% and unwrought gold and gold alloys up 9.1%, posting their largest monthly gains since April 2024 after the US Federal Reserve’s September 17 rate cut and amid expectations of further easing. Energy and petroleum products (+1.4%) also contributed, led by diesel (+2.5%) and finished motor gasoline (+1.4%). Meat, fish, and dairy products (+0.7%) rose, supported by fresh and frozen chicken (+4.3%) and beef and veal (+1.4%). Offsetting the gains, lumber and other wood products fell 4.4%, with softwood lumber down 10.7% following higher US duties on Canadian imports. On a yearly basis, producer prices increased 5.5% in September, marking the 12th consecutive annual gain, following a 3.7% increase in August.

China’s economy expanded 4.8% year-on-year in Q3 2025, down from 5.2% in Q2, marking its slowest pace since Q3 2024. While in line with market expectations, the GDP growth has lost momentum after a strong start to the year, pressured by U.S. trade tensions, a prolonged property slump, and soft consumer demand. September data showed retail sales in China rose at their slowest pace in a year despite ongoing consumer subsidy programs, while the jobless rate edged down but remained near August’s six-month high. Industrial output, however, grew at its fastest pace in three months ahead of Golden Week. On the trade front, exports and imports beat forecasts as firms pushed into new markets and domestic demand was boosted by holiday spending. China’s statistics bureau cautioned that risks and external headwinds persist, with the recovery’s foundation still fragile. Still, it said that 5.2% growth in the first nine months lays a “solid foundation” for meeting a full-year target of around 5%.