Trump easing concerns over the US -Sino trade war saw Wall Street rebound on turnaround Tuesday, after a wild start to the trading week. The President soothed the markets with comments that he is willing to negotiate with China on trade. The Dow rocketed over 400 points, whilst the S&P and Nasdaq jumped 1.6%. These are the most encouraging comments that we have heard from Trump regarding the trade war, which is providing a glimmer of hope to traders that Trump could be turning a corner on this policy ahead of the midterm elections.

Visa, Goldman Sachs, Microsoft and Caterpillar were top gainers on the Dow

In a market wrap, analysts at ANZ Bank New Zealand Limited explained that US equities were up overnight after European bourses followed the bounce in Asian equities.

After week three of the US earnings season, around 250 S&P 500 Index companies have reported Q3 results, representing roughly 60% of total index earnings. Consensus earnings growth expectations now stand at +23% against the same period last year, up from +20% at the beginning of the earnings season. The upside revisions are broad-based, led by technology, healthcare and communication services. Real estate and utilities are the only sec-tors where consensus expectations have been revised to the downside. In contrast to market perception, management guidance has also surprised to the upside. In total, 69% (long-term average 54%) of the companies have beaten earnings expectations, and 55% (average 55%) have beaten sales expectations.

China’s manufacturing gauge softens

China’s PMI data for October were below forecast, with the manufacturing index slipping to 50.2, the lowest since July 2016 when the PMI dipped briefly below the 50 contraction/expansion threshold. The services index was also weaker, dropping to 53.9 from 54.9, also below economists’ estimates and the weakest since August 2017.

Hyundai Construction Equipment has failed to satisfy earnings expectations in the third quarter, said Korea Investment and Securities on Oct. 31 lowering the target price to 110,000 won (US$96.55) from 170,000 won.

Silver prices climb after Monday’s 1.8% decline

Oil tumbled for a third straight week as crumbling equity markets across the globe stoked concern about a slowdown in energy demand growth.

In a market wrap, analysts at ANZ Bank New Zealand Limited explained that US equities were in the green at the time of writing, but gains have eroded throughout the trading day.

US futures set to open higher after inflation data. Asian markets closed mostly lower on trade fears. In Germany, Angela Merkel’s coalition government saw heavy losses in a recent election.