Good morning, it’s Paul-Alain Hunt from the Melbourne bureau. The ASX is set to open flat. But first, here’s the headlines you need to know.

Today’s must-reads:

• Albanese to meet Trump
• A trader’s guide to China
• WA leads the way in grain

What’s happening now

Prime Minister Anthony Albanese is expected to meet US President Donald Trump on Monday in Washington for talks that will include discussions over the supply chain of rare earth materials. Minister for resources, Madeleine King, and the minister for industry and innovation, Tim Ayres, will accompany Albanese for parts of the visit.

Here’s our trader’s guide ahead of China’s biggest political meeting of the year. A pivotal political gathering in Beijing this week could deliver fresh policy measures to extend China’s strongest equity rally in eight years and shore up the yuan, as investors weigh risks from escalating US trade tensions.

The nation’s biggest grain-producing state, Western Australia, may harvest a record-breaking crop this year thanks to strong weather and a shift from livestock to cropping, potentially exacerbating a global wheat glut.

The International Monetary Fund sees ”significant downside risks″ to global growth due to renewed frictions between the US and China, the fund’s Director of the Asia and Pacific Department Krishna Srinivasan said on Friday.

What happened overnight

Here’s what my colleague, market strategist Mike “Willo” Wilson says happened while we were sleeping…

US stocks edged higher after US President Trump expressed optimism that talks with Chinese officials could yield an agreement to defuse the tariff spat between the world’s two biggest economies. Aussie and kiwi closed steady into the weekend and are little changed this morning as the latter digests third quarter inflation data. The only other highlight locally is some RBA speak tomorrow, while offshore the much delayed and vaunted US CPI report rounds out the week. ASX futures show an uninspired start for local equities.

The Louvre in Paris, is one of the most heavily guarded places in Europe. Yet it was shut on Sunday after several pieces of jewelry were stolen in a robbery. The museum has at times been breached, most famously in 1911 when Leonardo Da Vinci’s Mona Lisa was stolen.  

China said it’s uncovered “irrefutable evidence” of US government cyber attacks on the country’s main agency responsible for timekeeping. The US spy agency has repeatedly used stolen login credentials since April 18, 2023, to hack into the computers at the center, the ministry said. 

The Gaza truce that President Donald Trump hopes to parlay into broader Middle East is fraying. Israel launched strikes against Hamas in Gaza and reportedly suspended all aid shipments on Sunday after blaming Hamas for a lethal Palestinian ambush that left two soldiers dead.  

A dark tanker carrying liquefied natural gas from a US-sanctioned Russian export plant has positioned itself for a rare open-water fuel transfer off the coast of Malaysia, satellite images show, in a demonstration of the increasingly circuitous routes taken by Moscow to evade Western restrictions.

What to watch

• Nothing major scheduled today

One more thing...

Despite soaring sales and international hype, Kojima’s famed denim mills are struggling to replace a dwindling pool of master weavers. Long cherished by connoisseurs for its textured yarns and the unique way it fades, the patiently crafted fabric is gaining global recognition with fashion houses such as Christian Dior and Balenciaga using it in their collections. Yet just as Japanese denim enjoys global attention, its future looks fragile. With a rapidly aging population, Japan faces a labor shortage that’s particularly acute in Kojima’s denim workshops.

Bloomberg

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