U.S. stock index futures collectively weakened, Japanese stocks narrowed gains after reaching new highs, spot gold fell by 2%, silver dropped below the $50 mark, and cryptocurrencies declined

On October 21, the market continued to assess the trade situation and the upcoming U.S. inflation data, leading to fluctuations in global stock markets. U.S. stock index futures fell slightly, European stocks opened higher collectively, and Asian stocks initially rose before the gains weakened, with the Japanese stock market narrowing its gains after hitting a new high. U.S. Treasury yields remained flat, the dollar strengthened, gold and silver prices plummeted, and cryptocurrencies declined.

The ongoing trade situation continues to affect investor sentiment, with the market focusing on the progress of trade negotiations. Winnie Wu, head of Asia-Pacific equity strategy at Bank of America Securities, stated: "Currently, the market is not overly concerned about decoupling or a large-scale escalation." At the same time, the market is paying attention to inflation data and U.S. corporate earnings reports.

• The three major U.S. stock index futures fell more than 0.1%.

• The European Stoxx 600 index opened up 0.12%, the UK FTSE 100 index opened up 0.29%, the French CAC 40 index opened up 0.01%, and the German DAX index opened up 0.18%.

• The Nikkei 225 index rose more than 0.2%, closing at 49,316.06 points. It opened up 1%, reaching 49,675.43 points, again setting a historical high. The South Korean Composite Stock Price Index rose over 2% on Tuesday, marking the sixth consecutive historical high. The Vietnamese VN index rose 2% during the day.

• The U.S. dollar index rose over 0.1%, reaching 98.77.

• Spot gold fell more than 2.00% during the day, currently at $4,258 per ounce. Spot silver fell below $50 per ounce for the first time since October 10, with a daily decline of 4.6%. Spot palladium retreated below $1,400 per ounce, with a daily drop of 6.13%.

• Brent crude oil prices hovered around $60 per barrel, nearing the lowest closing price since May.

• Bitcoin fell nearly 3%, and Ethereum fell nearly 4%.

The Nikkei 225 index rose more than 0.2%, closing at 49,316.06 points. The Japanese stock market opened higher, with the index again setting a historical high, but retreated after the election of Fumio Kishida.

On the day of the Japanese House of Representatives' prime ministerial nomination election, the market initially rose 1%, reaching 49,675.43 points. This was generally attributed to strong expectations that the new government would maintain an expansionary fiscal policy and pursue a path similar to "Abenomics."

After the announcement of Fumio Kishida's election, the gains in the Nikkei 225 index narrowed, retreating from historical highs. According to analysis from Nomura Securities and other institutions, the current core issue has shifted from "what will happen" to "how long can it last." For investors, the stability of the new government's political foundation will be a litmus test for assessing the true value of this rally.

The three major U.S. stock index futures fell more than 0.1%, as the trade situation continues to affect investor sentiment. At the same time, the market is focusing on inflation data and U.S. corporate earnings reports. The U.S. Bureau of Labor Statistics will release the Consumer Price Index for September on Friday, which was delayed due to the government shutdownThe data was originally scheduled to be released on October 15, which would provide key inflation data for Federal Reserve officials ahead of the policy meeting on October 30. Rick Gardner of RGA Investments stated that due to the government shutdown leading to data scarcity, this data may become even more important. He still expects the Federal Reserve to cut interest rates in October.

The third quarter earnings season for U.S. stocks is in full swing, with companies such as Netflix, General Electric, Coca-Cola, and General Motors set to release their earnings reports on Tuesday.

Spot gold fell more than 2.00% during the day, currently reported at $4,258 per ounce. Previously, gold prices had been rising continuously, repeatedly hitting historical highs. Due to easing market risk sentiment, gold prices have retreated.