Saxo Market Call US & China check the key "trade war detente" boxes. Meanwhile, market narrowness a concern.
Oct 30, 2025
The podcast dives into the easing of US-China trade tensions, highlighting key concessions made by both sides for a one-year pause. A discussion on the current narrow market rally raises concerns about its sustainability. The impact of Fed Chair Powell's hawkish stance and a dovish take from the Bank of Japan are explored. Insights on Bitcoin's potential as an independent asset class, along with earnings previews for major companies, add further intrigue. Additionally, the podcast touches upon rare earth supply chains and upcoming economic indicators.
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Episode notes
Narrow Rally Masks Market Weakness
- The market rally is extremely narrow, with big-cap MAG-7 names driving indices while most stocks lag.
- John Hardy warns this breadth divergence suggests near-term vulnerability and possible consolidation.
US–China Deal Is A Temporary Pause
- US and China agreed a pause on several trade measures, including one-year suspensions on some shipping and rare-earth controls.
- John Hardy calls it a "pause, not a peace," cooling tensions without changing the strategic climate.
Tariff Moves Cut Near-Term Costs
- Tariff reductions and suspensions trim real-world cost pressures, e.g., Chinese goods effective tariffs fall by about 10%.
- Hardy notes this may reduce investor urgency around rare-earth plays but won't end strategic resource races.
