**Global Market Update: What You Need to Know Today**

**China Tightens Rare Earth Exports**

China has announced new rules for exporting rare earth materials, which are crucial in making electronics, renewable energy systems, and military equipment. Starting December 1st, any foreign buyer or domestic exporter dealing with rare earths must get a special license, especially if the materials could be used in weapons. Exports to military users or watch-listed companies will be denied. This move may tighten global supply and push up prices for these critical resources.

**Gaza Ceasefire Deal – Confusion Remains**

Israel and Hamas have reportedly agreed to a ceasefire in Gaza. However, the situation on the ground remains unclear. Some reports say fighting continues, while Israeli officials say the ceasefire is technically active. The Israeli government is expected to formally approve the deal today, and hostages could begin to be released as early as Saturday. Qatar confirmed that all terms of the first phase have been agreed upon, including a withdrawal of Israeli forces and aid entering Gaza.

**Stock Markets Mixed Worldwide**

European stock markets are showing mixed performance this morning. U.S. stock futures are flat, following a record-breaking rally led by tech stocks on Wall Street. In Asia, most major indexes moved higher after China’s markets reopened from a week-long holiday.

**U.S. Dollar Gains Again**

The U.S. dollar is rising for the fourth straight session, helped by weakness in the British pound and New Zealand dollar. The New Zealand dollar remains under pressure after a surprise 50bps interest rate cut by the Reserve Bank of New Zealand. Meanwhile, political uncertainty in the U.K. and lack of strong economic data have kept the pound weak.

**Euro Holds Steady Despite Weak German Data**

The euro is stable even though Germany released more disappointing economic data, with both imports and exports falling in August. France’s political outlook has improved slightly, with President Macron set to name a new Prime Minister soon and signs that a national election may be avoided. The ECB will release its September meeting minutes today, which could impact euro sentiment further.

**Japanese Yen Slips**

The Japanese yen is weakening as USD/JPY climbs past 153. Markets are watching closely to see if it moves closer to 155, a key psychological level. The yen’s decline is mainly due to a stronger U.S. dollar and a lack of new economic updates from Japan.

**U.K. Pound Under Pressure**

The British pound is underperforming even though there’s little new news from the U.K. Bank of England member Catherine Mann repeated her stance that interest rates need to stay high longer to control inflation. Her comments had little market impact.

**Crude Oil Edges Higher Despite Ceasefire News**

Oil prices are slightly higher even with news of a Gaza ceasefire. Traders remain cautious as fighting hasn’t fully stopped yet. Also, oil supply concerns persist due to geopolitical risks in the Middle East.

**Gold Takes a Break After Hitting Record High**

Gold prices have cooled off after hitting a new all-time high of $4,059/oz yesterday. As tensions ease slightly and the dollar strengthens, gold dipped back down to $4,000/oz during Asian trading hours.

**Base Metals Recover with China Back Online**

Copper and other base metals are moving higher now that Chinese markets have reopened after a week-long holiday. China’s new rare earth export controls are also boosting prices for industrial metals like copper.

**Energy Supply Looks Stable in the U.K.**

U.K. energy officials say there should be enough electricity and gas this winter. Peak gas demand is expected at 182 million cubic meters per day, while supply capacity stands at 565 million cubic meters—well above demand.

**Government Shutdown Drags On in the U.S.**

The U.S. government shutdown continues with no resolution in sight. Both Democratic and Republican proposals to end it failed in the Senate. Meanwhile, the IRS will furlough 34,000 workers. President Trump said troops will likely still get paid and promised back pay for most federal employees.

**Fed Officials Speak on Economy and Rates**

Federal Reserve officials suggest interest rate cuts may come later this year but emphasized that inflation is still too high. Fed Chair Powell will speak today, although only pre-recorded remarks are expected—no Q&A session.

**France Political Update: New PM Coming Soon**

France’s bond market (OATs) is performing well as investors become more confident that legislative elections won’t happen soon. President Macron is expected to name a new Prime Minister by Friday. Politico reported that Jean-Louis Borloo is being considered for the role.

**Germany Approves EV Incentives**

Germany’s government has agreed on €3 billion in incentives for electric vehicles through 2029. This could mean more debt issuance, putting slight pressure on German bonds.

**Bitcoin and Ethereum Dip Slightly**

Cryptocurrencies are trading lower today. Bitcoin is just below $122,000, while Ethereum is down to $4,350.

**Asia Markets React Positively to U.S. Tech Rally**

Asian stock markets mostly moved higher overnight. The Nikkei extended its rally thanks to strong tech sector performance in the U.S., while Chinese stocks were mixed after reopening from their National Day holiday.

**Key Events Coming Up**

– ECB September meeting minutes
– Eurogroup meeting
– Banxico (Mexico central bank) meeting minutes
– Fed Chair Powell and other Fed officials speaking
– Earnings reports from Delta Air Lines and PepsiCo
– New Zealand Manufacturing PMI

Stay tuned for more updates as global markets continue to respond to geopolitical developments, economic data releases, and central bank signals.