Wrap: Fed caution, China telecom curbs, weak Aussie data, soft JGB auction, Ukraine update
- Japan 10 year Japanese Government Bond auction: Bid to cover ratio 3.34 (3.92 prior)
- Madrid authorities confirmed an outbreak of highly pathogenic avian influenza (H5N1)
- Trump emphasizes again his shut down a good opportunity, "billions of $ can be saved"
- Heads up - Bank of Japan Deputy Governor Shinichi Uchida will be speaking soon
- Japan 10-year bond auction faces test as BOJ rate hike bets grow
- RBA flags offshore risks, warns against easing housing credit as prices hit record highs
- Australian August 2025 trade balance +1825mn (expected +6500mn, prior +7310mn))
- China is stepping up restrictions on European telecom suppliers Nokia and Ericsson
- Corporate bitcoin treasury boom fizzles as purchases slow and stocks tumble
- Rare earth supply chain focus: China seeks Malaysian rare earth reserves in refinery talks
- UBS downplays U.S. shutdown fears, sees S&P 500 at 6,800 and gold at $3,900
- Goldman Sachs gold forecasts: $4,000 by mid-2026, $4,300 by Dec 2026. But upside risks!
- South Korea’s inflation picked up in September. CPI rising slightly faster than expected
- US will provide Ukraine with intelligence for long-range missile strikes on Russia
- Singapore dollar-backed stablecoin XSGD debuts on Coinbase amid global boom
- Asia attracts $100 billion of inflows as investors diversify from U.S., Goldman says
- Tesla sales slump eases in Q3 as Wall Street bets on recovery
- Trump plans cancelling western hydrogen hubs amid government shutdown
- Market pricing is uncertain on an October Fed 25bp interest rate cut, only 99% sure ;-)
- G7 vows to choke off Russian revenues - threatens penalties for Russian oil buyers
- Fed's Goolsbee says beginning to get concerned about inflation rising
- Wealth effects flip from drag to boost for U.S. consumption, Goldman Sachs analysts say
- Markets usually shrug off U.S. government shutdowns, Deutsche Bank says
- Major US stock indices close higher. The Dow and S&P closed at record levels
- The USD is ending the day mixed
- investingLive Americas market news wrap: Poor ADP jobs report weighs
Federal Reserve Bank of Chicago President Austan Goolsbee struck a cautious tone late in the U.S. session, saying he is “starting to get more concerned” about inflation drifting the wrong way. He warned that relying on inflation being transitory “makes me nervous,” while noting the underlying economy remains strong enough to support lower rates, though policymakers should tread carefully.
The Financial Times reported that China is tightening restrictions on European telecom suppliers Nokia and Ericsson, requiring opaque “black box” security reviews and greater disclosure of local content — a sign of rising barriers for Western tech firms in China’s critical infrastructure sector. Mainland Chinese markets remained shut for Golden Week, with trading to resume next Thursday, while Hong Kong reopened and equities rallied, catching up with the region’s strong week.
In Australia, data disappointed. Trade figures missed badly as exports of non-monetary gold slumped, while household spending in August came in weaker than expected. The softer consumption backdrop adds to the case for the Reserve Bank of Australia to resume policy easing as early as next month.
Japan’s 10-year government bond auction showed weaker demand, with the bid-to-cover ratio falling to 3.34 from 3.92 in September. The result highlights investor caution with yields near multi-year highs, speculation of an October BOJ rate hike building, and political uncertainty ahead of Saturday’s leadership election.
On the geopolitical front, U.S. officials confirmed Washington will begin providing Ukraine with intelligence to support long-range strikes against Russia’s energy infrastructure. The move marks a significant escalation, potentially enabling Kyiv to target refineries, pipelines and power plants deep inside Russian territory.
Asia-Pac stocks:
- Japan (Nikkei 225) +0.61%
- Hong Kong (Hang Seng) +1.08%
- Shanghai Composite Closed for Golden Week holidays
- Australia (S&P/ASX 200) +1.10%
Major FX rates traded narrowly range bound.
