Global stock markets mostly fell, the yen strengthened, spot gold fell below the $3,950 mark, and cryptocurrencies declined

Progress in trade negotiations has alleviated market concerns, leading to a weakening of risk aversion and a continuation of the decline in gold prices. The market is preparing for a series of earnings reports from major technology companies and policy statements from major global central banks this week, with the record rally in major global stock markets pausing.

On October 28, U.S. stock index futures weakened, Asian stock markets collectively fell, and European stocks opened lower for the most part. The U.S. dollar index slightly declined, the yen strengthened, U.S. Treasury yields fell slightly, and gold and silver continued to adjust, with spot gold dropping below $3,950 per ounce and cryptocurrencies generally declining.

This week, central banks around the world will release a large number of policy statements, with the Federal Reserve, European Central Bank, and Bank of Japan all making decisions. The Federal Reserve is expected to cut interest rates by 25 basis points, while the European Central Bank and Bank of Japan are expected to keep rates unchanged.

Core market trends:

• U.S. stock index futures collectively fell, with the S&P 500 futures down 0.05%, Nasdaq 100 futures down 0.02%, and Dow Jones futures down 0.02%.

• The Euro Stoxx 50 index opened down 0.3%, Germany's DAX index fell 0.2%, the UK's FTSE 100 index rose 0.15%, and France's CAC 40 index fell 0.4%.

• Asian stock indices collectively fell, with the Korea Composite Stock Price Index down 0.8% and the Nikkei 225 index down 0.24%.

• The yield on 10-year U.S. Treasury bonds decreased by 1 basis point to 3.97%.

• The U.S. dollar index fell 0.13% to 98.7. The yen strengthened, with the yen to U.S. dollar exchange rate rising 0.6% during the day to 151.95.

• Spot gold fell more than 1.1% during the day, currently at $3,934 per ounce. Spot silver fell more than 0.8%, currently at $46.47 per ounce.

• Bitcoin fell more than 1%, and Ethereum fell nearly 2%.

U.S. stock index futures collectively fell, with the S&P 500 futures down 0.05%.

The recent easing of trade tensions has driven U.S. stocks higher, as American companies protect profits through price increases and cost-cutting, largely unaffected by tariffs so far. However, this optimism faces a reality check this week, as investors will focus on the Federal Reserve meeting for clues on the path to interest rate cuts, while major tech companies like Amazon and Microsoft will also reveal whether their earnings momentum can be sustained.

The yen strengthened, with the yen to U.S. dollar exchange rate rising 0.6% during the day to 151.95.

After discussions on exchange rate fluctuations between U.S. Treasury Secretary Janet Yellen and newly appointed Japanese Finance Minister Shunichi Suzuki, the yen strengthened. Japan's Minister of Growth Strategy, Daishiro Yamagiwa, stated that authorities will continue to monitor the impact of a weak yen on the economy, leading to the yen's rise.

Market Live strategist Mark Cranfield stated: Forex traders interpreted these remarks as a signal from the U.S. side for a weaker dollar. However, the Bank of Japan still needs to fulfill its policy responsibilities this week to prepare for a rate hike in December; otherwise, the dollar against the yen may rebound to the 153 range or even higher

Spot gold fell more than 1.1% during the day, currently reported at $3,934 per ounce. Due to the easing of risk aversion sentiment from trade negotiation progress, gold prices have lost some support. Last week, gold prices surged strongly, reaching a historical high of $4,380 per ounce at one point. However, there are signs that gold prices have entered an overbought state, leading to a reversal in prices.

Citigroup analyst Max Layton stated in a report released on Monday that Trump's shift towards reaching trade agreements with various countries, combined with the change in momentum in the gold market and the potential end of the U.S. government shutdown, will drive gold prices down in the coming days and weeks. Analysts expect gold prices to fall to $3,800 per ounce in the next three months.

Ole Hansen, Head of Commodity Strategy at Saxo Bank, stated:

"Gold is undergoing a delayed correction, and today's driving force is positive news regarding trade negotiations. We may have already seen this year's peak, but as traders become more cautious and the stock market continues to rise, a deeper correction may take longer to recover."