(The opinions expressed here are those of the author, a

columnist for Reuters)

By Mike Dolan

Oct 21 (Reuters) - What matters in U.S. and global

markets today

By Mike Dolan, Editor-At-Large, Finance and Markets

While U.S. and world markets got a bounce to start the week,

spurred by optimism on trade, hopes for an end to the Washington

shutdown and some relief from regional bank jitters, the Wall

Street rally has stuttered early on Tuesday just as a deluge of

corporate updates looms.

The election of Liberal Democratic Party leader and fiscal

expansionist Sanae Takaichi as Japan's first female prime

minister on Tuesday sustained Monday's surge in the Nikkei stock

benchmark at record highs, but attention quickly switched to her

pick for finance minister. The yen continued to weaken even

after media reports that Satsuki Katayama was in the frame for

the job and has previously advocated a much stronger currency.

China's stocks recorded their biggest gain in six weeks,

meantime, as U.S. President Donald Trump expressed optimism

about a potential fair trade deal with Chinese President Xi

Jinping before the latest deadline on draconian tariffs hits on

November 1. U.S. Treasury Secretary Scott Bessent is set to meet

Chinese Vice Premier He Lifeng this week.

This week's Communist Party meeting on a new five-year

economic plan has also buoyed markets there.

Back stateside, there was some hope for an end to what's now set

to be a 21-day government shutdown, now matching the second

longest on record, after White House economic adviser Kevin

Hassett said it could end as soon as this week.

Regional bank jitters also eased a touch as one of the names in

the headlines last week, Zions Bancorp, reported decent earnings

overnight despite taking a hefty loss on two loans and its stock

rose 2% in after-hours trading.

But Wall Street stock futures fell back slightly before

Tuesday's bell, however, as the corporate earnings really kick

in. Netflix tops the diary, but big industrial and defense names

are also reported.

Helped by a drop in crude oil prices to 5-month lows on

Monday, U.S. Treasury yields were softer and the dollar was

stronger - mainly on the falling yen. In a rare move these days,

gold prices fell over 1% from this week's new records.

* Argentina's peso continued to weaken even after the central

bank there signed a $20 billion exchange-rate stabilization

agreement with the U.S. Treasury Department, six days ahead of a

key midterm election. A group of U.S. banks, including JPMorgan,

Bank of America and Goldman Sachs is hesitant to lend $20

billion to Argentina without guarantees or collateral, the Wall

Street Journal reported.

* Euro zone banks may come under pressure if U.S. dollar funding

- the lifeblood of financial markets - were to dry up, the

European Central Bank's chief economist Philip Lane said on

Tuesday amid concern over Trump's policies. Dollar funding fears

have been at the back of central bankers' minds since Trump

announced a wave of trade tariffs and began putting pressure on

the Fed earlier this year.

* Trump's backing of Australia's critical minerals will bring

much-needed financial support to the industry, but experts say

the U.S. president will have to wait longer to shift the supply

chain away from China and weaken its market dominance. Goldman

Sachs flagged mounting risks to global supply chains of rare

earths and other minerals in a note on Monday that emphasized

China's dominance - as it controls 69% of rare earth mining, 92%

of refining and 98% of magnet manufacturing.

In today's column, I take a look at the peculiar market

mood, which seems .

Today's Market Minute

* European leaders, including from Britain, France, Germany

and

the European Union, issued a joint statement with Ukraine on

Tuesday backing U.S. President Donald Trump's call for a

ceasefire at present battle lines.

* Hardline conservative Sanae Takaichi was elected Japan's

first

female prime minister on Tuesday, shattering the nation's glass

ceiling and setting it up for a forceful turn to the right.

* Donald Trump's backing of Australia's critical minerals

will

bring much-needed financial support to the industry, but experts

say the U.S. president will have to wait longer to shift the

supply chain away from China and weaken its market dominance.

* The surge in gold, cryptocurrencies and stocks has sparked

claims that the U.S. "debasement trade" is in full swing, but

the bond and the foreign exchange markets tell a very different

story, writes ROI markets columnist Jamie McGeever,.

* The deal to develop critical mineral supply chains between

the

United States and Australia is not quite the game-changer needed

to end Western reliance on China, but it is an important first

step, argues ROI Asia commodities columnist Clyde Russell.

Chart of the day

Gold slipped back from its latest record high on Tuesday

after an extraordinary 2025 that's seen it gain up to 66% - on

course for its best year since 1979. Investment fund demand for

gold exposure has been a key feature and data on exchange traded

gold fund flows just show how much that has swelled this

year.

Today's events to watch

* Canada September consumer prices (8:30 AM EDT)

* Federal Reserve Board Governor Christopher Waller

speaks; European Central Bank President Christine Lagarde speaks

* U.S. corporate earnings: Netflix, Omnicom, Texas

Instruments, Lockheed Martin, Northrop Grumman, Pentair,

Halliburton, General Motors, Paccar, Capital One, Nasdaq, 3M,

Equifax, EQT, Intuitive Surgical, Quest Diagnostics, Coca-Cola,

Philip Morris, Chubb, Danaher, Elevance, RTX, Genuine Parts,

Pultegroup

Want to receive the Morning Bid in your inbox every weekday

morning? Sign up for the newsletter

here

. You can find ROI on the

Reuters website

, and you can follow us on

LinkedIn

and

X.

Opinions expressed are those of the author. They do not reflect

the views of Reuters News, which, under the Trust Principles, is

committed to integrity, independence, and freedom from bias.

(By Mike Dolan; Editing by Alison Williams.)