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

columnist for Reuters)

By Mike Dolan

Oct 27 (Reuters) - What matters in U.S. and global

markets today

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

Trade and inflation relief are driving world stock markets

sharply higher on Monday, as we begin a packed week of big

central bank meetings and heavyweight tech earnings.

I'll get into all the market-moving news below.

Please also check out my column today in which I take a look

at how increasingly fragmented global trade and politics could

make the repatriation of global capital a key theme in the

coming years.

TODAY'S MARKET MINUTE

* Top Chinese and U.S. economic officials on Sunday hashed

out the framework of a trade deal for U.S. President Donald

Trump and Chinese President Xi Jinping to decide on later this

week that would pause steeper American tariffs and Chinese rare

earths export controls, U.S. officials said.

* Argentine President Javier Milei's party cruised to

victory in midterm legislative elections as voters handed him a

mandate to keep pushing through his radical overhaul of the

economy despite widespread discontent with his deep austerity

measures.

* China's state-owned defense giant Norinco in February

unveiled a military vehicle capable of autonomously conducting

combat-support operations at 30 mph (50 kph). It was powered by

DeepSeek, the company whose artificial intelligence model is the

pride of China's tech sector.

* A common view in the crude oil market is that Western

sanctions against Russia's exports are fairly pointless as the

market quickly devises ways to keep cargoes flowing. But ROI

Asia Commodities Columnist Clyde Russell argues that it all

depends on what Western powers want to achieve.

* Copper has a long history of mine supply disruption, but

this year is proving to be a particularly troubled one for a

sector that has been racing to keep up with smelter demand. Read

the latest from ROI Metals Columnist Andy Home.

STOCKS ZOOM ON TRADE AND INFLATION RELIEF

The seemingly endless "on-off" U.S.-China trade negotiations

are back on once more.

Top Chinese and U.S. officials on Sunday hashed out a

framework for a trade deal for President Donald Trump and

Chinese President Xi Jinping to decide on later this week, one

aimed at pausing steeper U.S. tariffs and Chinese rare earths

export controls.

Treasury Secretary Scott Bessent said talks at the ASEAN

Summit in Kuala Lumpur had eliminated the threat of Trump's 100%

tariffs on Chinese imports from November 1, and he noted that he

expected China to delay rare earth export curbs too.

U.S. stock indexes clocked record closing highs on Friday,

with the biggest weekly gains since August after a

slightly softer-than-feared September U.S. inflation readout

baked in expectations for another Federal Reserve interest rate

cut on Wednesday.

Wall Street index futures surged another 1% ahead of

Monday's bell, with Japan and South Korea's equity benchmarks up

more than 2% each and Chinese stock indexes up more than 1% to

more than 10-year highs. China's offshore yuan also jumped to a

six-week high, guided by a People's Bank of China reference rate

that was at its strongest since October last year.

Gold prices fell back nearly 2% as hopes of easing

U.S.-China trade tensions lifted risk appetite for equities.

This week's earnings diary sees five of the so-called

"Magnificent Seven" megacaps - Meta, Microsoft, Alphabet, Amazon

and Apple - due to report. They collectively make up about a

quarter of the entire S&P 500 value.

Facing a heavy schedule of new debt sales this week,

including $139 billion in 2- and 5-year notes later today, U.S.

Treasury yields have nudged higher, helped along by the stock

market surge and creeping inflation expectations in surveys.

The Bank of Canada is expected to cut by a quarter point on

Wednesday, too, with Trump's decision to add a 10% additional

tariff on Canadian imports likely to reinforce the easing

argument. Meanwhile, the Canadian dollar remains firm.

The European Central Bank and Bank of Japan are expected to

hold the line, with rising business expectations in Germany

encouraging the ECB to stand pat and the BoJ assessing the new

Japanese prime minister's fiscal policies. The yen and the euro

were firmer.

Chart of the day

Five of the so-called "Magnificent Seven" megacaps report

earnings this week, including Meta, Microsoft, Alphabet, Amazon

and Apple. AI-related capex and cloud computing growth will be

watched very closely.

Today's events to watch

* Dallas Federal Reserve's October manufacturing survey

(8:30 AM EST)

* U.S. corporate earnings: Universal Health, Cincinnati

Financial, Cadence Design, NXP, Welltower, Principal Financial,

Keurig Dr Pepper, Brown & Brown, Nucor, F5, Revvity, Hartford,

Arch Capital, Waste Management, Alexandria Real Estate

* U.S. Treasury sells $69 billion of 2-year notes and $70

billion of 5-year notes

* U.S. President Donald Trump visits Japan as part of

wider Asia tour

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

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committed to integrity, independence, and freedom from bias.

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