Markets left to figure out sanctions

Oil prices slipped on the possibility of increased Russian shipments after Trump waived some sanctions on Moscow, but he said the decision was still being worked out. Secretary of State Marco Rubio said officials wanted more time to evaluate the situation, and Trump would use up to 60 days to assess the economic impact of the sanctions and tariffs. It was unclear whether Russia could increase exports as Ukraine continued attacks on oil and logistics facilities.

Iran said an oil tanker caught fire and exploded after striking a naval mine in the southern Strait of Hormuz, while UKMTO reported more attacks on shipping. Tanker rates reached record highs and insurance charges rose, increasing the cost of shipping each barrel and lifting physical delivery prices. Brent futures were down about 1.5%, Treasuries extended their rally and Wall Street futures edged higher.

China’s economy grew 4.5% in the third quarter, slightly above forecasts. Retail sales rose 1.1% and industrial output grew 5.5%, in line with forecasts; the yuan strengthened to 6.6828, its strongest level since July 2022, while Chinese stocks edged down. US technology earnings growth is expected to reach 65%; Meta reports Wednesday and needs revenue of $62.5 billion to meet the midpoint of its own guidance. Meta expects 2026 capital spending of $130 billion to $145 billion.