Market Rundown: Trump-Xi Call, Bank of Japan, FedEx Earnings

Trump-Xi Summit and Trade Tensions

• 📞 President Trump and Xi Jinping are set to have a high-stakes phone call today, with TikTok, tariffs, and tech supremacy on the line.
• 🇹🇼 Trump is reportedly holding back approval for a military aid package to Taiwan, signaling readiness for a deal.
• 🇨🇳 Beijing is retaliating by cutting out American soybeans for the first time in decades.

Bank of Japan's Historic Move

• 🏦 The Bank of Japan has announced its first-ever plan to offload its massive ETF holdings, a significant shift after years of ultraloose monetary policy.
• ⏳ This unwinding process is expected to take over a decade, as the central bank currently holds more than 75 trillion yen in ETFs.
• 📈 While interest rates were kept unchanged, two members pushed for a hike, potentially influencing the October meeting.

Oil Prices and Geopolitics

• 🛢️ Oil is heading for its second weekly gain despite President Trump's calls for lower prices.
• 🗣️ Trump is pressuring Russia to end the war in Ukraine and urging countries to stop buying fuel from OPEC+ members.

US Government Funding and FedEx Earnings

• 🏛️ The US House of Representatives votes today on a stop-gap funding bill to avert a government shutdown, with Democrats opposing the current proposal.
• 📦 FedEx shares rose after reporting better-than-expected earnings, though the company anticipates a $1 billion hit from trade volatility this year, highlighting the impact of trade wars on corporate profits.