- European stocks rose after dovish comments from Federal Reserve officials and the prospect of more Chinese economic stimulus boosted risk appetite, as investors assessed the potential impact of the Israel-Hamas conflict.
- The STOXX Europe 600 index rose 1.5%, on track for its best day in a month, with gains across all industry sectors. Miners led the rally, with copper and nickel prices rising after it was reported that China is planning a new round of stimulus measures.
- Treasuries rose, catching up with the global government bond rally that began on Monday, when cash trading in the US was closed. The policy-sensitive two-year Treasury yield fell to its lowest level since the end of August, while the benchmark 10-year yield had its best day since March. Equity futures in the United States rose, while the dollar extended its losing streak to a fifth day.
- Traders increased their bets on another Fed hike last week after US employment unexpectedly increased in September. However, the narrative shifted on Monday as central bank officials quelled the speculation. Following the recent rise in Treasury yields, Fed Vice Chair Philip Jefferson said officials could "proceed cautiously," and Fed Bank of Dallas President Lorie Logan said the surge in long-term rates may mean less need for further tightening. Another round of Fed speakers may be added to the mix today.
- BoJ contemplates raising fiscal year 2023 price outlook to near 3% - Kyodo.
