Asian equities began the week on a subdued note as high U.S. Treasury yields tested Wall Street's lofty valuations, keeping the U.S. dollar near multi-month highs. Market Performance : MSCI Asia-Pacific Index dipped 0.2% but remains 16% up for the year. Japan’s Nikkei slid 0.9%, still boasting a 20% annual gain. Chinese blue chips rose 0.3%, with most of their 16% yearly gain achieved after Beijing’s September stimulus promises. South Korea's index edged up 0.3% but is down 9% for the year, weighed by political uncertainties and events like Jeju Air’s recent plane crash. Global Futures : EUROSTOXX 50 futures gained 0.1%. U.S. futures saw slight declines, with S&P 500 and Nasdaq futures down 0.1%. Economic Drivers and Concerns U.S. Treasury Yields : Yields on 10-year Treasuries are near eight-month highs at 4.631%, up 75 basis points for the year. Rising yields reflect revised expectations of less restrictive monetary policy, raising concerns about potential impacts on corpo...
Global markets kicked off the week with mixed moves as crude oil prices tumbled and US equity futures rose, with traders reassured by Israel’s targeted strikes on Iran that avoided key oil facilities. This development has eased immediate geopolitical fears, sending Brent crude prices down by more than 5% at one point.
US futures for the S&P 500 and Nasdaq 100 climbed, signaling a potential rebound for Wall Street following the S&P 500’s first weekly decline in seven weeks. European stock futures also gained, while Treasury yields jumped, with the 10-year yield hitting 4.28%, the highest level in over three months.
In currency markets, the yen dropped to its weakest level in three months after a snap election in Japan, while China’s stocks slipped following disappointing industrial profit data in September, raising concerns about economic momentum.
Meanwhile, this week is expected to be pivotal, with corporate earnings reports from five of the Magnificent Seven tech giants, key economic data from the US, Eurozone, and the UK, and the US presidential election on the horizon.
The weaker yen provided some relief for Japan's export-heavy economy, pushing the Topix Index up by as much as 1.8%. In contrast, Chinese shares edged lower after the release of weak industrial profit figures.
Adding to the excitement, Waaree Energies Ltd., India’s largest solar-panel maker, saw its shares surge nearly 75% in its debut following a $514 million initial public offering.
This week’s major events include US job openings, consumer confidence, goods trade data, and the UK budget announcement, as well as earnings from major companies such as Meta, Microsoft, Amazon, and Apple.
Key Market Moves:
- S&P 500 futures rose 0.5%
- Nasdaq 100 futures rose 0.7%
- Brent crude fell 4% to $72.97 per barrel
- 10-year Treasury yield advanced to 4.28%
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