Bank of Korea Downplays Liquidity’s Role in Weak Won and Housing Price Surge 
Korea Zinc Plans $6.78 Billion U.S. Smelter Investment With Government Partnership 
Dollar Struggles as Markets Eye Key Central Bank Decisions and Global Rate Outlooks 
Asian Stocks Slide as AI Valuation Fears and BOJ Uncertainty Weigh on Markets 
New Zealand Budget Outlook Shows Prolonged Deficits Despite Economic Recovery Hopes 
Asian Currencies Trade Sideways as Dollar Weakens Ahead of Key U.S. Data 
S&P 500 Slides as AI Chip Stocks Tumble, Cooling Tech Rally 
Gold Prices Slip Slightly in Asia as Silver Nears Record Highs on Dovish Fed Outlook 
U.S. Stock Futures Mixed as Tech and AI Stocks Face Pressure Ahead of CPI Data 
Japan PMI Data Signals Manufacturing Stabilization as Services Continue to Drive Growth 
U.S. Dollar Slips Near Two-Month Low as Markets Await Key Jobs Data and Central Bank Decisions 
Fed Rate Cut Signals Balance Between Inflation and Jobs, Says Mary Daly 
Oil Prices Slip in Asia as 2026 Supply Glut Fears and Russia-Ukraine Talks Weigh on Markets 
Fed Near Neutral Signals Caution Ahead, Shifting Focus to Fixed Income in 2026 
Japan Business Sentiment Hits Four-Year High, Boosting Expectations of BOJ Rate Hike 
South Korea Extends Bond Market Stabilization Measures Amid Rising Financial Risks 
MSCI's global equities index declined on Monday as Federal Reserve Chair Jerome Powell indicated that the central bank is not in a rush to cut interest rates, leading to a rise in the dollar. Brent crude also experienced its most significant monthly and quarterly losses since late 2022, driven by concerns about waning global demand and tensions in the Middle East.
Oil Futures Flat Amid Volatility
The global benchmark, Brent crude, saw a 17% drop in the third quarter, its most substantial quarterly fall in a year. While geopolitical concerns about Middle East conflicts initially caused market volatility, declining global demand played a more significant role in the downward trend.
Stock Markets React to Powell's Comments
U.S. stocks faced volatility after Powell's comments indicated a cautious approach to rate cuts, with the likelihood of two 25-basis-point reductions this year, depending on economic developments. Some investors had expected larger cuts, causing stocks to fluctuate throughout the day.
“That sounded less dovish than the market had priced in,” said Robert Phipps, director at Per Stirling Capital Management. Powell’s comments reduced expectations of a more substantial 50-basis-point cut by the end of the year.
Wall Street Ends Quarter Mixed
Despite volatility, U.S. stock indices closed the session with mixed results. The Dow Jones Industrial Average rose 17.15 points (0.04%) to 42,330.15, the S&P 500 added 24.31 points (0.42%) to 5,762.48, and the Nasdaq Composite increased by 69.58 points (0.38%) to 18,189.17. The S&P 500 gained 2.01% for the month and 5.53% for the quarter. MSCI’s gauge of global stocks reflected around a 2% monthly gain and a 6% quarterly rise.
Dollar and Treasury Yields Rise
The dollar appreciated following Powell's remarks, reducing expectations for a larger rate cut. The dollar index increased 0.32%, with the euro dropping 0.27% to $1.1133 and the dollar strengthening 1% against the Japanese yen. U.S. Treasury yields also edged higher, with the 10-year yield increasing to 3.785%, and the 2-year yield climbing to 3.637%.
Energy and Gold Markets
In energy markets, U.S. crude settled down 1 cent at $68.17 per barrel, showing a 7% decrease for September, its largest monthly drop since October 2023. Brent crude declined by 21 cents to $71.77 per barrel, posting a 9% monthly drop and a 17% quarterly decrease. Gold prices eased after recent gains, with spot gold down 1% to $2,631.39 an ounce and U.S. gold futures dropping 0.54%.
