Wall Street ended the session on a high note as optimism grew that lawmakers would finally bring an end to the historic 43-day government shutdown. The DJI climbed to another record close, while bond yields slipped as investors priced in a more dovish Federal Reserve outlook. The White House, however, signaled that the October employment and inflation reports may never be released, leaving markets without key indicators for assessing the economy’s next move.
Treasury Secretary Bessant said the structure of government debt issuance will be gradually revised in line with investor demand, while Fed officials hinted that asset purchases could resume as reserves near targeted levels. Traders are increasingly betting that the 10-year yield could soon drop below 4%, reflecting growing conviction that rate cuts are on the horizon.
Meanwhile, the USD held steady as the JPY briefly weakened beyond 155 per dollar — its softest level since February. On the corporate side, hedge funds are pushing into private credit markets, seeking returns in an area long dominated by private equity giants. AI spending also remains a dominant theme: Anthropic announced a $50 billion investment in U.S. data centers, while Meta unveiled a $1 billion facility in Wisconsin.
European equities mirrored Wall Street’s positive momentum, with major indexes touching new highs on strong corporate earnings and easing bond spreads between southern and northern European debt. Political attention turned toward transatlantic trade relations, as Brussels reportedly prepares a plan to deepen the summer’s U.S.-EU trade pact.
Meanwhile, France called for earlier implementation of new parcel tariffs, and Germany’s finance minister reiterated his resistance to low-quality Chinese imports, underscoring ongoing trade friction.
London traders took cues from the falling U.S. yields and softer dollar, while energy markets were rattled by OPEC’s latest report indicating that oil supply has overtaken demand faster than expected. Crude prices fell sharply, reinforcing expectations that global inflation pressures will continue to moderate into year-end.
Asian markets delivered a mixed performance as investors digested conflicting signals from China and the broader region. Reports that Beijing has quietly paused purchases of US soybeans raised questions about the durability of the recent trade truce, while G7 nations voiced concern over China’s expanding nuclear capabilities and growing regional assertiveness.
In Australia, home loan volumes surged to record highs, validating the RBA’s decision to keep rates on hold. Canberra’s debt office suggested it may scale back issuance this fiscal year thanks to stronger finances, while national security officials accused Chinese state-linked hackers of probing key infrastructure.
The AUD and NZD both advanced, supported by expectations of steady job growth and firm domestic data. Copper and precious metals climbed on hopes of future Fed easing, while JPY weakness reignited talk of possible intervention from Tokyo.
The Dow Jones ended at a record high, while the S&P 500 edged up 0.06% and the Nasdaq slipped 0.06%. Crude oil tumbled 4.36%. In crypto, Bitcoin softened after a $340 billion market wipeout, while gold gained on growing rate-cut expectations.
Crypto assets slumped as nearly $340 billion in value vanished from the market, with BTC sliding toward key support and major altcoins following lower. Traders blamed profit-taking and renewed regulatory concerns for the pullback, suggesting the sector’s recent rally may be losing momentum.
