US-China trade talks begin in Malaysia; US denies investing in quantum computing firm.

US-China Trade Talks Scheduled in Malaysia

Overview

From October 24 to 27, a delegation led by Vice Premier He Lifeng will engage in trade discussions with the US in Malaysia. This meeting follows a recent video call between He and US Treasury Secretary Janet Yellen, where both parties agreed to expedite the next round of trade talks.

US Economic Data and Federal Reserve Expectations

CPI Report and Interest Rate Outlook

The upcoming US Consumer Price Index (CPI) report for September is expected to show persistent inflation. However, investors may overlook this as the market prepares for potential interest rate cuts by the Federal Reserve next week. Analysts suggest that the CPI will not significantly impact the Fed's decisions, which may include two rate cuts this year.

Federal Reserve's Balance Sheet Strategy

JPMorgan and Bank of America predict that the Federal Reserve will halt its balance sheet reduction this month, ending a process aimed at withdrawing liquidity from financial markets. This decision comes as borrowing costs in the dollar financing market have risen.

Chinese Economic Policy Updates

Fourth Plenary Session Outcomes

The Fourth Plenary Session of the 20th Central Committee of the Communist Party of China emphasized the need to boost consumption and effective investment, aiming to eliminate barriers to a unified national market.

US Government Developments

Trump-Putin Meeting Possibility

The White House indicated that a meeting between President Trump and President Putin is not entirely off the table, despite ongoing frustrations regarding Russia's actions in peace efforts.

Quantum Computing Investment Discussions

The US Commerce Department clarified that it is not currently negotiating equity stakes in quantum computing firms but is considering funding options like warrants or loans.

Market Highlights

US Housing Sales and Oil Prices

US existing home sales reached a seven-month high in September, totaling an annualized 4.06 million units. Meanwhile, international oil prices surged, with WTI crude up 5.62% to $61.79 per barrel.

Stock Market Performance

US stock indices closed higher, with the Nasdaq rising 0.89%. Major tech stocks like Micron and Intel saw significant gains, while Chinese stocks listed in the US also performed well.

Notable Earnings Reports

• Intel reported a Q3 adjusted EPS of $0.23, returning to profitability.
• Ford lowered its full-year adjusted EBIT forecast to $6-6.5 billion.
• Newmont Mining saw a 19.7% increase in Q3 revenue, exceeding expectations.

Corporate Developments

Oracle's Bond Issuance

Oracle is set to issue a record $38 billion in bonds to fund data centers, marking a significant move in AI infrastructure.

Anthropic and Google Cloud Partnership

Anthropic confirmed a multi-billion dollar partnership with Google Cloud, gaining access to substantial computing resources.

Hong Kong Market Movements

Capital Inflows

On October 23, net inflows into Hong Kong stocks reached HKD 5.345 billion, with significant purchases in China National Offshore Oil and sales in Hua Hong Semiconductor.

Company Earnings

• Ping An Good Doctor reported a 13.6% increase in revenue for the first three quarters.
• Hengrui Medicine received approval for a clinical trial of a new drug.

Upcoming Economic Data

Key economic indicators, including the US September CPI and PMI data, are set to be released soon, alongside earnings reports from major companies like Procter & Gamble and General Dynamics.