Flash News

TREE NEWS reports: Brazil’s benchmark stock index closed down 13.9% on the day, its worst single-day performance since 2020. The sharp decline marks one of the most severe one-day selloffs for Brazilian equities in recent years.

TREE NEWS reports: The Bloomberg Electric Vehicle Price Return Index rose 0.53% on Monday, Oct. 26, closing at 2,881.65. Among components, Ather Energy Ltd. gained 14.13%, Yadea Group Holdings H-shares added 7.63%, Tesla climbed 5.21% and Hesai rose 4.26%. XPeng’s H-shares bucked the trend, closing down 3.83%.

TREE NEWS reports: The Philadelphia Semiconductor Index rose 2.9% and the memory chip index also gained 2.9% as the S&P 500 added 0.7% and the Nasdaq 100 climbed 1.1%. Lumentum led Nasdaq 100 components with an 8% gain, while Arm, Synopsys and Tesla each rose at least 5.1%. Strategy fell 4.3%, DoorDash 5.9% and MercadoLibre 7.9%, with the telecom sector down 1.5%.

TREE NEWS update: Brazilian lawmaker Jair Bolsonaro said federal police have demanded he surrender his passport, after he acknowledged defeat in last weekend’s election. The demand marks a fresh legal step involving the congressman, who conceded the vote over the weekend. It was not immediately clear what grounds the police cited for the request.

TREE NEWS update: Brazil’s Finance Minister Dario Durigan said the government will pursue a higher real primary fiscal surplus next year without specifying a figure. He also said the government plans to submit a bill to Congress this year requiring policymakers to formally target the “midpoint” of the primary balance goal, and that the Treasury intervened in the government bond market on Monday by canceling scheduled auctions and conducting special reverse repo operations after election-related concerns drove long-term interest rate futures sharply higher.

TREE NEWS reports: Fitch Ratings said Luiz Inácio Lula da Silva’s election victory in Brazil increases fiscal uncertainty, which could make it harder for the government to achieve a lasting stabilization of its debt-to-GDP ratio. The rating agency flagged the risk in its assessment of the incoming administration’s fiscal path.

TREE NEWS reports: ICE raw sugar futures fell 5.63% to 19.10 cents per pound in late New York trading on Monday, October 26, after opening lower near 19.80 cents in European morning trade and extending losses from 20:00 to 23:40 Beijing time. ICE white sugar futures dropped 4.11%, while ICE arabica coffee fell 2.59%, New York cocoa fell 1.59% to $5,503 per tonne, and ICE cotton fell 1.60%.

TREE NEWS update: US President Donald Trump said Brazil’s election results “look very bad,” without specifying which contest or what prompted the remark. The comment was a brief statement from the president on the Brazilian vote, and no further details or official reaction were provided.

TREE NEWS reports: The dollar rose 0.37% against the yen to 157.45 in late New York trading on Monday, October 26, with the pair moving between 156.65 and 157.64 during the session and climbing steadily from 10:41 to 23:31 Beijing time. The euro gained 0.18% against the yen to 176.05, and sterling added 0.18% to 210.165. The yen fell 0.40% against the offshore yuan to 4.2345.

TREE NEWS reports: Steel Dynamics shares quickly gave up earlier gains and turned 1.2% lower, while Nucor’s decline widened to 1.2%. The moves followed reports that the US and Canada are working toward an agreement to ease US tariffs on Canadian steel and auto imports.

TREE NEWS reports: CBOT wheat futures fell 1.52% and soybeans dropped 1.16% to $12.5350 per bushel in Monday’s New York close, with soymeal down 1.88% and corn off 0.22%. The Bloomberg Grains Subindex fell 0.90% to 30.5453 points, roughly flat versus the Asia-Pacific open after touching 30.2846 at 22:38 Beijing time. Soy oil gained 0.28%, while lean hogs slid 1.30% and feeder cattle rose 0.16%.

TREE NEWS reports: The ICE U.S. Dollar Index rose 0.17% to 101.984 in late New York trading on Monday, Oct. 26, with an intraday range of 101.582 to 102.056. The index climbed steadily from 10:44 to 21:59 Beijing time. The Bloomberg Dollar Spot Index gained 0.10% to 1,222.25, trading between 1,219.65 and 1,223.58.

TREE NEWS update: A federal appeals court ruled that the Federal Reserve must rewrite its rule capping debit card transaction processing fees, finding the current rule violates congressional intent. The rule allows banks to include certain costs, such as fraud prevention, when calculating swipe fees, which the court said does not meet the requirements of the 2010 Dodd-Frank Act. The decision upholds a lower court’s ruling that vacated the Fed’s debit card interchange fee cap.

TREE NEWS reports: US retailers are heading into the most expensive holiday parcel-shipping season on record, with ground shipping rates including e-commerce orders expected to rise 5.8% year over year in the fourth quarter. Soaring diesel prices have pushed UPS and FedEx to raise fuel surcharge rates further, driving up retailer costs. Holiday-related parcel volumes could double in the fourth quarter.

TREE NEWS reports: Hedge funds sold technology stocks last Thursday at the fastest pace in two years, as Wall Street suffered its biggest selloff since July. In a note to clients, the head of the bank’s hedge fund client business said the move casts serious doubt on conviction in the AI trade, and that beneath the S&P 500’s three-month range, “persistent performance drawdowns” have been masked since late June as the AI trade unwound.

TREE NEWS reports: US investment-grade bond sales are projected to reach a record $1.76 trillion. The figure marks the highest annual volume on record for high-grade corporate debt issuance. No further details on the forecast’s timing or source were provided.

TREE NEWS reports: Fitch Ratings’ head of US economic research said the breadth of US inflation had already widened before the recent acceleration in headline price growth. The remarks indicate the inflation rise is not entirely due to energy factors, and that broader price gains could slow the return to target even if energy pressures ease, keeping monetary policy tighter for longer.

TREE NEWS reports: The Hang Seng Index main futures contract closed down 0.01% at 23,233 points in the night session, while the Hang Seng Tech Index main futures contract gained 0.08% to 3,865 points. The split close left the benchmark flat and the tech gauge modestly higher.

TREE NEWS reports: The onshore yuan closed at 6.6695 per dollar at 03:00 Beijing time, up 9 pips from Friday’s night-session close. Trading volume for the session totaled $38.581 billion.

TREE NEWS reports: Polymarket priced Luiz Inácio Lula da Silva at roughly 20% to win Brazil’s presidential election before voting, with Flávio Bolsonaro at 80%, and Lula went on to win a fourth term. Large trader FhantomBets said retail traders were bearish on Lula, inflating Bolsonaro’s odds, while professional traders saw Lula at close to 30%-40% on election day. CoinShares researcher Luke Nolan and TxODDS CEO Einar Knobel pointed to Brazil’s ban on prediction markets as a key source of the mispricing; Knobel said the market drew most traders from outside Brazil and carried only 4.5% of the volume of the 2024 U.S. presidential market.