5 Things You Need to Know to Start Your Day: Americas

Good morning. The US stock rally gets fresh impetus, markets wait for a raft of Fed speakers and commodities have a big day. Here’s what tra [View in browser]( [Bloomberg]( Good morning. The US stock rally gets fresh impetus, markets wait for a raft of Fed speakers and commodities have a big day. Here’s what traders are talking about. — [David Goodman]( Want to receive this newsletter in Spanish? [Sign up to get the Five Things: Spanish Edition newsletter](. Stocks gain US futures [pointed to more gains](on Friday, leaving the S&P 500 set for a third weekly rise — the longest run since February. The rally was given fresh legs yesterday by data that supported the case for Federal Reserve rate cuts, but the real test will come with a key US inflation print next week. Treasuries and the dollar were flat. Easing hopes The Bank of England yesterday helped to spark renewed hope of rate cuts that[remained undented](in the face of [faster-than-expected UK GDP data this morning](. Now, focus turns to the Fed, as a slew of officials, including Michelle Bowman and Neel Kashkari, make comments before next week’s crucial CPI data. Commodity rally The rising optimism over rate cuts has also translated into a rally in commodities that is a big story in markets today. Gold advanced to the highest level in three weeks (read more on that from Eddie below) and oil [extended gains into a third day](. Meanwhile [copper climbed above $10,000 a ton]( as supply worries continued to mount. China Tariffs Bloomberg’s Josh Wingrove, Jennifer Jacobs and Eric Martin broke the big news Friday that President Joe Biden’s administration is [poised to unveil a sweeping decision on China tariffs]( as soon as next week, one that’s expected to target key strategic sectors while rejecting the across-the-board hikes sought by Donald Trump. The new tariffs will focus on industries including electric vehicles, batteries and solar cells, with existing levies largely being maintained, and an announcement is scheduled for Tuesday. Citi downgrade Sticking with China, strategists at Citigroup became the latest to sound a warning on the nation’s high-flying equities, [downgrading their rating to neutral](and arguing that the recent rally has come despite weakening fundamentals. Earlier this week, analysts at Morgan Stanley also [warned that investors]( should be wary of chasing one of the world’s biggest stock rallies. What we’ve been reading This is what’s caught our eye over the past 24 hours. - ‘[Block-Trade King](’ Sadler built $360 million fortune at Segantii. - Apple apologizes for iPad Pro Ad, [scraps plan to air it on TV.]( - BFF bank shares [slump 32%]( amid Bank of Italy probe. - UBS mulls bonus for investment bankers who [lure rich clients](. - [American-style tipping]( is now testing pub culture in Britain. And finally, here's what Eddie’s interested in this morning The confounding rally in gold prices just won’t roll over. With data earlier this week showing that official Chinese purchases slowed, one might have thought a run back up to the highs was off the cards. Not so. The metal is rising a second day, pushing back toward $2,400/oz. Central bank buying remain a source of support, but appetite in China is waning. Of course, that’s per the latest reported data, and there’s no telling what’s been happening since. Nor did reported numbers fully account for demand, given that this sector lagged the outflows in exchange-traded funds. My favorite theory remains that the same entity that’s selling in the ETF market is buying physical metal to privately vault. That would make sense, for instance, for a sovereign wealth fund which could obtain cheaper storage than ETFs would offer. The marginal cost of adding an additional bar to a vault is pretty low, so there are substantial scale savings to be had. Still, for this rally to push on to record highs near [$2,500](custom:bbg://screens/NSN%20SD950TT1UM0W), as ANZ is predicting, real demand is needed. And China’s official sector, if it is indeed nearing it’s quota, will leave a rather big hole in the market. Eddie van der Walt is Deputy Managing Editor of Markets Live, Follow him on X [@EdVanDerWalt]( Like Bloomberg's Five Things? [Subscribe for unlimited access]( to trusted, data-based journalism in 120 countries around the world and gain expert analysis from exclusive daily newsletters, The Bloomberg Open and The Bloomberg Close. [Bloomberg Markets Wrap: The latest on what's moving global markets. Tap to read.]( Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Before it’s here, it’s on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can’t find anywhere else. [Learn more](. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Five Things to Start Your Day: Americas Edition newsletter. 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