News in Brief

Trump-Xi talks, Meta’s AI conference, US economic data and Costco earnings could all influence financial markets in the days ahead.

Global markets face another important week, with investors watching developments in trade, artificial intelligence, economic growth and corporate earnings.

Attention will focus on a high-profile meeting between US President Donald Trump and Chinese President Xi Jinping, while Meta CEO Mark Zuckerberg is due to speak at the company’s Connect conference.

Investors will also be monitoring the United Nations General Assembly, fresh US business activity data and quarterly earnings from Costco.

Trump-Xi Meeting Takes Centre Stage

One of the biggest market events this week will be the expected meeting between Donald Trump and Xi Jinping.

Trade and artificial intelligence are likely to dominate discussions, with investors watching closely for any signs of improved relations between the world’s two largest economies.

Reports suggest the leaders may discuss extending the existing US-China trade truce.

Key issues to watch include:

• US-China trade relations
• Tariffs and future trade restrictions
• Artificial intelligence regulation
• Technology competition
• Global supply chains

US and Chinese officials have also recently discussed the possibility of creating an AI safety notification system.

Meta Connect and AI Safety Concerns

Artificial intelligence will remain firmly in focus when Meta CEO Mark Zuckerberg delivers a keynote speech at the company’s Connect conference on Wednesday.

Meta and other major technology companies are spending heavily on AI infrastructure, including data centres and advanced computer chips.

However, concerns are growing about the speed of AI development and the possible risks associated with increasingly powerful systems.

Investors will therefore be listening for updates on Meta’s AI strategy, future spending plans and new products.

UN General Assembly in Focus

World leaders will gather in New York for the United Nations General Assembly this week.

Major topics are expected to include:

• Artificial intelligence
• The Middle East
• The war in Ukraine
• Global security
• International economic cooperation

Statements from political leaders could influence financial markets, particularly if they affect expectations surrounding energy prices, international trade or geopolitical risk.

US PMI Data Could Signal Economic Strength

Investors will also receive fresh information on the health of the US economy when S&P Global releases its preliminary September Purchasing Managers’ Index figures.

The services PMI is expected to ease slightly to 56.0 from 56.5, while manufacturing activity is forecast to fall to 53.4 from 53.9.

Any reading above 50 indicates that the sector is expanding.

The data could influence expectations for US interest rates, particularly if economic activity proves stronger or weaker than forecast.

Costco Earnings Put Consumers in Focus

Costco will be one of the most closely watched companies reporting earnings this week.

Previous results have shown that US consumers remain cautious because of elevated inflation, but continue to seek cheaper products and value-focused retailers.

Investors will watch Costco’s results for clues about:

• Consumer spending
• Food inflation
• Fuel demand
• Profit margins
• Household confidence

Costco shares have risen by more than 4% so far this year.

Conclusion

Markets face several potential catalysts this week, ranging from US-China relations and AI developments to economic data and corporate earnings.

For investors, the Trump-Xi meeting, US PMI figures and Costco’s results could provide particularly important clues about the direction of global markets, economic growth and investor sentiment.