Stocks had a good day. Commodities had a big day (aligning with a big move lower in the dollar).
And the U.S. yield curve steepened, which is generally associated with a more optimistic view on the economy.
My view: Part China. Part mid-term elections looming.
China: President Xi is now a couple of weeks into his unprecedented third term. And overnight, at China's International Import Expo, his opening ceremony address was entitled: "Working Together for a Bright Future of Openness and Prosperity."
He said, China remains committed to "opening up to the outside world." This is big news (near term), especially if it implies that Xi will begin prioritizing economic growth over covid prevention.
The speech was full of language suggesting China wanted to play nice in the world for "mutual benefit," working with "all countries" to share the opportunities from "deepened cooperation."
It's global growth positive. And as a signal, Xi (the PBOC) strengthened the yuan on the day (which they control).