Risks spanning credit markets, elevated commodity prices and French political turmoil boosted demand for safer government bonds, snapping a prolonged decline fueled by persistent inflation concerns. Sovereign debt rose in Japan, Australia and New Zealand as investors sought haven assets, while Treasuries held the bulk of their gains from Thursday’s rally. A Bloomberg gauge of the dollar headed for a third weekly gain, the longest winning run since January 2025. European bonds, though, remained under pressure as concerns around France’s fiscal and political situation pushed euro-area risk premiums higher. French bond futures held near an all-time low, while their German equivalents climbed for a fourth day, and longer-maturity UK gilt yields briefly climbed above 6%. Pressure has been building elsewhere as well. Asian shares were set for their worst week since July and European stocks their worst since April. Global oil benchmark Brent held above $102 a barrel after a two-day gain. Iron ore futures fell for a 10th day in Singapore — potentially the longest losing run in more than a decade — and copper was poised for its biggest weekly loss since May. Risks have been building across markets as elevated inflation concerns keep pressure on bonds, leaving the path for energy prices and any escalation between Washington and Tehran crucial to the outlook. That raises the stakes for Friday’s US jobs report, which may offer clues on how much scope the Federal Reserve has to take a more measured approach to further tightening. Economists estimate the US jobs report due Friday will show nonfarm payrolls rose 90,000 in September after climbing by 162,000 in the prior month, the most since March. The unemployment rate is seen remaining at a one-year low of 4.1%.
In other corners of the market, while Asian shares dropped 0.6%, sentiment in equities steadied as US stock-index futures edged up. Earlier, Wall Street benchmarks eked out a small gain Thursday in volatile trading. Hong Kong shares fell the most since March as they reopened after a holiday. HSBC Holdings Plc dropped almost 5%, tracking moves in global peers amid investor concerns over higher yields and potential UK tax hikes targeting the banking sector. Meanwhile, global credit markets started showing signs of caution, as investors pull back following record borrowings and growing concerns about balance sheets as inflation persists. Spreads on global corporate bonds have blown out about five basis points this week, the most since March. That leaves them at their widest in half a year, according to a Bloomberg index. Trading at the start of the global day in Asia on Friday pointed toward more selling, with yield premiums on investment-grade notes increasing two to four basis points, traders said. Bonds remained in focus as the risk premium in euro-area government bonds shot up on Thursday, a sign that concerns around France’s fiscal and political situation are starting to spill over into other markets. The spread between Italy and Germany’s two-year yields almost doubled to 55 basis points on Thursday, the biggest daily jump since 2020 on a closing basis. The equivalent gap for France rose as much as 22 basis points, the most since 2012. US After Hours NKE -6.3% lower on earnings.
Nikkei -1.09% Hang Seng -2.65% CSI Closed Kospi +0.08% Shanghai Closed Shenzen Closed
Eur$ 1.1251 CNH 6.7052 CNY 6.7064 JPY 157.85 GBP 1.3210 CHF 0.8296 RUB 84.2168 TRY 49.1399 WTI$ 92.28 -0.55% Gold 4,188 +0.58% BTC 86,331 +2.04% ETH 2,727 +1.06%
S&P +0.26% Nasdaq +0.35% EuroStoxx +0.15% FTSE +0.27% Dax +0.17% SMI +0.23%
Macro :
- Bank M&A Backdrop Remains Favorable According to Raymond James
- Cboe Eyes VIX Perpetuals as Exchanges Move Beyond Crypto
Keep an eye on :
Keep an eye on :
- ADS GY : Watch Adidas, Puma and JD Sports After Nike’s ‘Ugly’ Guidance
- AIR FP : Airbus Tells Airlines to Inspect Some A330 Jets for Stray Tools
- AIR FP : Airbus Tells Airlines to Inspect Some A330 Jets for Stray Tools
- AMZN US : Amazon Seeks to Offload $8b Nvidia Chips to Investors: FT
- Anthropic IPO : Anthropic Targets IPO as Soon as Middle of November
- Anthropic IPO : Anthropic Targets IPO as Soon as Middle of November
- BA/ LN : BAE Weighs Bid for Robin Radar in Possible Deal: Reuters
- BO US : FAA Schedules Friday Meeting on 737 Max Software Issue: Reuters
- COLOB DC : Coloplast Says Louis-Hansen Now Holds 1.92% of Share Capital
- CRBN NA : Corbion CEO Olivier Rigaud to Step Down in May 2027
- CTVA US : Corteva to Join S&P MidCap 400 Following Vylor Spinoff
- DIS US : Disney Planning TV Restructuring as Streamlining Continues -- WSJ
- ISS DC : ISS Gets Eight-Year Order From Tryg Worth About DKK100m Per year
- JD/ LN : Watch Adidas, Puma and JD Sports After Nike’s ‘Ugly’ Guidance
- BAER SW : Julius Baer Unveils CHF600 Million Buyback After End of Probe
- KNEBV FH : Kone Plans Sale of Most of TK Elevator Europe: Reuters
- LAND LN : Landsec Taps £500 Million to Fund Shopping Mall Deal: ECM Watch
- MAT US : Mattel Attracts Takeover Interest From Authentic, WSJ Says -> +19%
- MRNA US : Moderna to Join Nasdaq-100 Index on Oct. 9
- NKE US : NIKE beats by $0.04, reports revs in-line; guides FY27 EPS below consensus, FY27 revenue expected to decline high-single digits -->-6.3% in after hours
- NOVN SW : Abogen To License mRNA Asset to Novartis for $575m Upfront
- NU US : Monzo Held Early Talks With CVC, Advent on Selling Stake: FT
- NVDA US : Chinese State-Backed Firm Disclosed Nvidia Blackwell Chips Deal
- NVDA US : Amazon Seeks to Offload $8b Nvidia Chips to Investors: FT (1)
- ON US : Onsemi and Synaptics Rise on Revised All-Cash M&A Deal, *ONSEMI TO BUY SYNAPTICS FOR $123/SHR CASH IN REVISED DEAL
- PGHN SW : Partners Group Revamps Evergreen Fund That Capped Redemptions
- PRU US : Japan FSA Finalizing Prudential Business Halt Order: Toyo Keizai
- PUM GY : Watch Adidas, Puma and JD Sports After Nike’s ‘Ugly’ Guidance
- SGSN SW : SGS Acquires Majority Stake in Prescient Security; No Terms
- SKAB SS : Skanska Gets US Order for Pier Worth About SEK2.5b
- SYNA US : *SYNAPTICS SHARES JUMP 15% POSTMARKET ON REVISED ONSEMI DEAL
- 8TRA GY : Traton Reiterates 2026 Guidance in Analyst Briefing: Bernstein
- TFIN IM : Trevi Board Says Icop’s Revised Offer ‘Not Fair’ Financially
- TRYG DC : ISS Gets Eight-Year Order From Tryg Worth About DKK100m Per year
- TWLO US : Twilio Set to Join S&P 500
- UNI SM : Unicaja Says Board Chairman Sevilla to Step Down at Next AGM
- ALVIO FP : Abogen To License mRNA Asset to Novartis for $575m Upfront (wrote a quick note if you care)
- VYLR US : *VYLOR VYLR TO BE ADDED TO S&P 500