Bonds & Stocks
Global stocks advanced as strong earnings reignited risk appetite in a market that’s been whipsawed for days by shifting trade-war fears. Gold surged above $4,200 an ounce to a fresh record. The dollar fell against all major peers as bets on Federal Reserve interest-rate cuts grew and China stepped up support for the yuan. US Treasuries gained across the curve, with the yield on 10-year notes falling two basis points to 4.02%.
Economy
President Trump said he might stop trade in cooking oil with China as retaliation against Beijing for its refusal to buy American soybeans. Trump posted on social media that the US can easily produce cooking oil itself and doesn't need to purchase it from China. The comments re-escalated the conflict with China, causing the benchmark S&P 500 to turn negative, while shares of some oilseed processors jumped on the news.
World
Cambodia is ready to sign a peace deal with Thailand coordinated by President Trump, according to Suos Yara, a spokesperson for the ruling Cambodian People’s Party. The Asean meeting comes on the heels of a ceasefire Trump helped broker between Israel and Hamas and as he touts his success in mediating several conflicts. The neighbors faced off over a five-day clash along their border earlier this year, which left more than 40 people dead and thousands displaced. The two sides reached a fragile ceasefire in July after Trump threatened to block trade deals unless the fighting ceased. While Cambodia has been amenable to Trump’s efforts to mediate — and nominated him for the Nobel Peace Prize for his role in ending a recent border clash — Thailand has resisted outside intervention. Thailand has set four conditions before it will begin negotiations with Cambodia, including the withdrawal of troops and the removal of land mines.