Australia Unemployment Hits Five-Year High Despite Strong Jobs Growth 
Canadian Dollar Faces Pressure as Fed-BoC Policy Gap Widens 
U.S. Treasury Yields Surge as 30-Year Hits 22-Year High 
US Stocks Face Jobs, Inflation Test as Fed Rate Hike Bets Rise 
Germany’s 2026 Growth Outlook Strengthens on Fiscal Spending 
Soybean Futures Slip as Traders Await Trump-Xi Trade Signals 
ECB May Stop Rate Hikes After December, Capital Economics Says 
Mexico-US Trade Talks Delayed to October as Tariff Negotiations Continue 
European Stocks Fall as Bond Yields and Geopolitical Risks Weigh 
China Consumer Stocks Near Decade Lows as AI Shares Surge 
China Agrees to Buy 20 Million Tons of U.S. Coal 
Japanese Yen Rebounds as Trump Flags Currency Weakness 
Asian Stocks Fall as Surging Bond Yields Rattle Markets 
Dollar Holds Near Two-Month High as Yen Approaches 160 
Fed Unveils Stablecoin Rules Under GENIUS Act 
Wall Street Ends Flat as Oil, Treasury Yields and Fed Jitters Rattle Markets 
Dollar Falls as Oil Eases, Yen Jumps on Intervention Signals 
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Chinese Stocks Rally Amid Stimulus Hopes, But Gains Begin to Cool
Chinese stocks surged to two-year highs in early October, driven by optimism surrounding Beijing's financial stimulus measures. The Shanghai Shenzhen CSI 300 and Shanghai Composite Index climbed between 16% and 20% since late September, fueled by expectations of more economic support from the Chinese government.
UBS Analysts Remain Optimistic Despite Cooling Momentum
Despite recent cooling in the market, UBS analysts continue to support an Overweight rating on Chinese stocks, noting that while valuations are no longer as low as a month ago, there is still value to be found. The brokerage highlighted the positive trajectory of Beijing’s fiscal policies, although implementation appears slower than expected.
Beijing’s Fiscal Stimulus Plans
China’s Ministry of Finance recently introduced a range of fiscal measures, including increased debt issuance, property market relief, and financial support for local governments. However, investors were left wanting more details on the timing and scope of these actions, particularly those aimed at boosting domestic consumption.
Investor Sentiment Shift: India vs. China
Interestingly, UBS pointed out that China’s rally has coincided with capital outflows from India, suggesting a shift in investor sentiment. UBS maintains an Underweight rating on India among emerging markets, hinting at potential ongoing capital reallocation to Chinese assets.
Outlook
While recent market gains have slowed, UBS expects further clarification on China’s fiscal policies in the coming months, which could provide additional support to local equities.
