- Global bond markets recovered, with the 10-Yr US Treasury yield falling to 4.8% amid growing concern that the recent selloff was excessive. The Nasdaq 100 index futures rose ahead of Microsoft and Alphabet earnings.
- Treasury 10-Yr yields fell five basis points to a one-week low after reaching their highest level since 2007.
- Europe's STOXX 600 index rose 0.5%, while US futures rose 0.5%. Bitcoin surpassed $35,000, while the euro fell against the dollar as data showed the French and German economies struggling.
- Treasuries are regaining ground after some of the market's most prominent bears warned of an economic slowdown, fueling speculation that the declines have been overstated and that the Federal Reserve will need to lower interest rates. Wild swings in government debt are unsettling investors, as a resilient economy makes predicting when the Fed will stop raising interest rates difficult. The outlook is also clouded by rising government issuance and geopolitical tensions.
- Brent crude recovered from two days of losses, rising above $90 per barrel. During a visit to Israel, French President Emmanuel Macron called for an international coalition to combat Hamas and warned other Iranian-backed militant groups not to open new fronts in the conflict.
- China’s President Xi makes an unprecedented PBoC visit as a sign of focus on the economy.
- BoJ is said to mull whether to tweak YCC over US yield concerns. BoJ is to watch yields to the last minute before a decision. They see little need to change forward guidance.
- BoJ's median estimate for trend inflation stood at +2% for September, hitting the 2% mark for the first time since January 2001.
- ECB's President Lagarde told EU officials the battle against inflation is going well.
- PMI data in Europe was weaker overall, leading to a weaker euro.
