A volatile and busy Asian session saw the CSI 300 open up 11% as trading resumed after their weeklong holiday. Chinese stock turnover hit a record CNY 2.6 trillion, but the index is only +3.5% as I type. A briefing by China’s National Development and Reform Commission failed to deliver more stimulus measures following policy announcements made before the Golden Week holiday. Iron ore was down more than 4% at one stage.
Yesterday, US stocks failed to rally as investors trimmed bets on Federal Reserve rate cuts, and US Treasury 10-year yields are now above 4%. Brent crude soared to $80 as mounting tensions in the Middle East raised speculation that Israel may attack Iran’s oil infrastructure. Bitcoin fell 0.5% to $62,703.24, and spot gold was little changed at $2,645 per ounce. In equities, Chevron Corp. agreed to sell stakes in oil sands and shale assets in Western Canada to Canadian Natural Resources Ltd. for $6.5 billion, while casino stocks gained after Wynn Resorts Ltd. received a commercial gaming operator’s license in the United Arab Emirates.
As for the day ahead, we’ve just had Swedish CPI come in slightly firmer, rising +0.3% m/m and +1.2% y/y for September, but today will mainly focus on speeches from officials. In the US, Fed speakers include Raphael Bostic, Susan Collins, Philip Jefferson, and Adriana Kugler, while in Europe, we will hear from the ECB's Isabel Schnabel.
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