European Stocks Fall as Bond Yields and Geopolitical Risks Weigh 
US 10-Year Treasury Yield at 6% Emerges as New Market Risk Threshold 
Fed Unveils Stablecoin Rules Under GENIUS Act 
Dollar Holds Near Two-Month High as Yen Approaches 160 
Australia Unemployment Hits Five-Year High Despite Strong Jobs Growth 
Japan Private-Sector Growth Slows as Domestic Demand Weakens 
Dollar Falls as Oil Eases, Yen Jumps on Intervention Signals 
Gold Prices Fall as Treasury Yields Rise on Fed Rate Hike Bets 
Trump, Xi Focus on Trade and AI at White House Summit 
Japanese Yen Rebounds as Trump Flags Currency Weakness 
Asian Stocks Fall as Surging Bond Yields Rattle Markets 
Mexico-US Trade Talks Delayed to October as Tariff Negotiations Continue 
Oil Prices Jump 3% as Houthi Attack Revives Supply Fears 
U.S. Dollar Hits Two-Month High as Oil, Treasury Yields Surge 
Asian Currencies Mixed as Dollar Holds Near Two-Month High 
RBI Uses $10 Billion Currency Swaps to Drain Excess Rupee Liquidity 
Gold Holds Near $4,275 as Rising Treasury Yields Fuel Fed Rate Hike Bets 
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Asian stock markets climbed on Monday, fueled by optimism surrounding corporate earnings and growing expectations for U.S. interest rate cuts. Investors are closely watching the U.S. inflation data, anticipated to show core inflation steady at 3.1% in September—unlikely to alter the Federal Reserve’s dovish outlook.
JPMorgan’s chief U.S. economist Michael Feroli noted that Fed Chair Jerome Powell’s focus on labor market weakness signals another rate cut at the upcoming FOMC meeting. Markets are fully pricing in a 25-basis-point rate reduction this month, followed by another in December, potentially bringing rates down to 3.0% by mid-2026.
In Asia, Japan’s Nikkei jumped 1.5% after news that the Liberal Democratic Party and Japan Innovation Party would form a coalition government, paving the way for Sanae Takaichi to become Japan’s first female prime minister. Analysts expect her pro-stimulus stance to boost equities while weighing on the yen and bond yields. South Korea’s KOSPI rose 0.6%, and MSCI’s Asia-Pacific index outside Japan edged up 0.1%.
U.S. stock futures were steady, with S&P 500 futures flat and Nasdaq futures up 0.1%, as investors anticipate strong third-quarter results from major corporations including Tesla, Netflix, Ford, GM, Procter & Gamble, and Coca-Cola. LSEG IBES data forecasts an 8.8% year-over-year increase in S&P 500 earnings, underscoring high expectations for the reporting season.
Falling bond yields supported equity sentiment, with 10-year U.S. Treasury yields slipping to 4.011%. Meanwhile, the euro strengthened to $1.1656, and the yen weakened to 150.92 per dollar.
Gold prices held firm near $4,245 per ounce after a 6% weekly surge, while oil prices remained subdued—Brent crude steady at $61.28 and U.S. crude at $57.57—as OPEC+ maintained high output levels.
