Start the day with Reuters on the stories moving U.S. and global markets. Subscribe for $1/week.

Morning Bid U.S.

A Reuters Open Interest newsletter

What matters in U.S. and global markets today

By Mike Dolan, Editor-at-Large, Finance & Markets

After a turbulent week of central bank tightening, markets now turn to diplomacy - or at least top-level summits - as world leaders gather at the United Nations General Assembly in New York this week.

Topping the list of bilateral summits, though, is Thursday's meeting between US President Donald Trump and Chinese President Xi Jinping in Washington.

I'll get into that and more below.

But first, listen to the latest episode of the Morning Bid daily podcast, where we discuss the week's upcoming meetings and easing oil prices.

Subscribe to hear Reuters journalists discuss the biggest news in markets and finance.

Data refreshes every time you open this email. For more U.S. market news, click here. Please send any feedback to morningbid@thomsonreuters.com.

Today's Market Minute

Since the two leaders' last meeting, Xi Jinping has overseen a surge in China's trade while Donald Trump has struggled with falling approval ratings at home, tempering expectations for their summit this week, analysts say.
After talks between Treasury Secretary Scott Bessent and Chinese Premier He Lifeng on Sunday, the US side proposed a new AI safety notification mechanism for Trump and Xi to consider.
Oil prices slid to their lowest in more than a week on Monday as investors hoped for diplomatic progress on the Iran war due to this ‌week's UN meeting and eyed a partial recovery in shipments from Saudi Arabia.
A new shuttling system is reshaping the Middle East oil market, as producers seek to keep exports flowing despite the escalating conflict. ROI Energy Columnist Ron Bousso asks whether this is a stopgap or the new normal.
The oil shock caused by the Iran war is re-charging the EV market as high gasoline and diesel prices stimulate consumer demand - with huge implications for critical inputs such as lithium, nickel and copper, writes ROI Metals Columnist Andy Home.

Summiteering

Ahead of the Trump-Xi summit, Treasury Secretary Scott Bessent and China's Vice Premier He Lifeng met on Sunday to prepare an agenda on trade relations, AI concerns and geopolitics.

But the noisy backdrop of two raging wars in the Middle East and Eastern Europe competed for the weekend headlines, as both Saudi Arabia's capital Riyadh and Russia's capital Moscow came under attack from Iran-backed Houthis and Ukrainian forces, respectively.

Oil prices did slip back on Monday, however, on hopes that Saudi Arabia would restore some flows through its East-West pipeline and amid some reports that oil and fuel shipments had picked up in September. Observable data was less optimistic. There were also some hopes that Chinese pressure on Iran to rein in regional attacks may have some impact.

Even though Brent crude remains above $100 per barrel and reports of some refined oil shortages were emerging at US retailers, stock markets welcomed the crude retreat and were higher in thin trading on Monday.

Japan has had little opportunity to react to Friday's Bank of Japan interest rate rise, as Tokyo markets are closed for much of this week for holidays.

The yen pared some losses on Friday after a reported rate check, having weakened against the dollar following the hike. The currency was steady on Monday amid some trepidation about further official intervention during the market closures.

More broadly, rate markets were trying to calibrate 'what next' after the Federal Reserve's rate rise last week. One more hike is now fully priced by year-end, and a move as soon as next month is about 50-50.

Minneapolis Fed boss Neal Kashkari said on Sunday that inflation concerns were not just about oil prices, with services price inflation just as worrying. Economists reckon the Fed is now trying to reset to absorb a faster-growing economy ahead that may prevent it hitting its inflation target.

Two-year Treasury yields have jumped as much as 36 basis points in the past two weeks.

Elsewhere, the Bank of England is also expected to raise rates by year-end, even after leaving policy unchanged last week. And European markets will eye another round of poor results for Germany's ruling CDU party in two weekend state elections, although German Chancellor Friedrich Merz vowed to press on and the euro held steady first thing Monday.