Xi-Trump summit and 5% Treasury yields set high-stakes market week

  • Xi Jinping and Donald Trump will meet during Xi’s three-day Washington state visit.
  • 5% is the psychologically important threshold recently tested by the 10-year US Treasury yield.
  • Indonesia’s Wednesday rate decision follows leadership changes at its central bank and Finance Ministry.

World markets face a high-stakes week centered on Chinese President Xi Jinping’s three-day state visit to Washington to meet President Donald Trump. Investors will watch whether the summit affects US-China tensions over Taiwan, Iran, artificial intelligence and the US military buildup in space; Trump will also host a White House state dinner expected to include Nvidia CEO Jensen Huang and other technology executives. Flash US manufacturing PMI data will test markets after the 10-year US Treasury yield approached the psychologically important 5% level and the Federal Reserve delivered its first interest rate hike in more than three years. The 81st UN General Assembly High-Level Week will address fractured global diplomacy, conflicts in Ukraine and the Middle East, the next UN Secretary-General, AI governance, climate threats and sovereign debt mechanisms. AI safety warnings from Anthropic’s CEO and other laboratory leaders are challenging the sector’s rapid growth, while Trump has called the warnings a hoax and European Commission President Ursula von der Leyen wants leading AI companies to discuss the risks in Europe. Indonesia’s central-bank decision will be Destry Damayanti’s second meeting as governor and the first since she was formally sworn in as the institution’s first woman leader. The decision is expected to be either a hold or a small cut, following the dismissal of Finance Minister Purbaya Yudhi Sadewa and amid investor concerns over policymaking, fiscal spending and the possibility that MSCI could classify Indonesia’s equity market as frontier status.

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