Fed’s Hammack Says Bond Yield Surge Is Not Driven by Inflation Fears 
China Agrees to Buy 20 Million Tons of U.S. Coal 
RBA Set for September Rate Hike as Inflation Stays High 
Oil Prices Rise as Iran Holds Firm on Strait of Hormuz Deal 
US Stocks Face Jobs, Inflation Test as Fed Rate Hike Bets Rise 
Gold Holds Near $4,275 as Rising Treasury Yields Fuel Fed Rate Hike Bets 
Japanese Bank Stocks Surge as Bond Yields Fuel Rate Hike Bets 
Dollar Falls as Oil Eases, Yen Jumps on Intervention Signals 
Canadian Dollar Faces Pressure as Fed-BoC Policy Gap Widens 
UK PM Burnham to Unveil Economic Vision at Labour Conference 
Oil Prices Fall on U.S.-Iran Hormuz Deal Hopes 
Europe’s AI Data Centre Boom Strengthens Case for Nuclear Power 
Trump to Ease U.S. Fuel-Economy Standards 
Asian Stocks Fall as Surging Bond Yields Rattle Markets 
Dollar Holds Near Two-Month High as Yen Approaches 160 
China Industrial Profit Growth Slows as Weak Demand Offsets AI Gains 
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Global stock markets traded mostly lower on Monday as rising oil prices and fading hopes for a quick U.S.-Iran truce intensified inflation concerns and pushed bond yields higher ahead of a busy week of economic data.
Oil prices climbed after U.S. President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz. Trump said negotiations would continue this week, while Tehran has shown little indication it will soften its conditions.
Brent crude futures jumped 2.1% to $106.49 a barrel, extending their monthly gain to nearly 18%. U.S. crude rose 1.5% to $93.84. Limited refining capacity has also driven diesel prices to record highs, increasing concerns that elevated energy costs could feed into broader inflation and wages.
Those pressures have prompted central banks to tighten monetary policy. The Reserve Bank of Australia is expected to be the next focus when it meets Tuesday. Markets are pricing a 66% probability of another Federal Reserve rate hike in October, with about 90 basis points of tightening expected through late 2027.
Higher rate expectations continued to pressure bonds. The 30-year U.S. Treasury yield rose to around 5.52%, near its highest level since 2004, while two-year yields have climbed 55 basis points in September.
Asian equities weakened, with South Korean shares falling 2.4% and Chinese blue chips dropping 1.4%. MSCI's Asia-Pacific index excluding Japan declined 0.6%, while Japan's Nikkei was little changed. U.S. S&P 500 and Nasdaq futures slipped 0.3% and 0.5%, respectively.
Investors are now awaiting U.S. inflation, GDP, manufacturing and employment figures. Friday's September payrolls report is expected to show 85,000 new jobs, with unemployment holding at 4.1%.
Strong economic data have supported the U.S. dollar, pushing the dollar index to a two-month high of 101.39. The euro slipped to $1.1380, while the dollar rose 0.3% against the yen to 157.73.
Gold fell 1.7% to $4,212 an ounce as surging Treasury yields reduced demand for the non-interest-bearing precious metal.
