In Asian Equity Markets stocks were on edge on Monday morning ahead of the release of Chinese economic data for the third quarter, as investors fret about the health of the world’s second-largest economy even as U.S companies report strong quarterly earnings. MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed in early trading on Monday, off 0.07 percent, while Japan’s Nikkei lost 0.12 percent. The broader Topix lost 0.23 percent to 2,019.23 but Topix transport equipment maker index rose 1.86 percent to reach its highest levels since 2015.
In Currency Markets the U.S. dollar found a footing on Monday as soft economic data in China and climbing oil prices jangled investors’ nerves that inflation will drive interest rates higher. The dollar index rose 0.1 percent to 94.102, edging it back toward last week’s one-year high of 94.563. The dollar last bought 114.35 yen, traded at $1.1579 against the euro and was up roughly 0.2 percent at $0.7402 per Australian dollar. Sterling held at $1.3734, just below Friday’s one-month high of $1.3773. The kiwi rose almost 0.5 percent to a one-month high of $0.7105 before easing back to flat at $0.7071.
In US Equity Markets stocks rose on Friday and the Dow scored its biggest weekly percentage gain since June, as Goldman Sachs rounded out a week of strong quarterly earnings for the big banks. The Dow rose 1.09 percent, to 35,294.76, the S&P 500 gained 0.75 percent, to 4,471.37 and the Nasdaq Composite added 0.5 percent, to 14,897.34. Goldman Sachs Group shares rose 3.8 percent as a record wave of dealmaking activity drove a surge in the bank’s quarterly profit. Alcoa Corp shares rose 15.2 percent after the aluminum producer reported stronger-than-expected results.
In Commodities Markets gold prices fell on Friday as a rebound in U.S. bond yields and a surprise increase in September retail sales dented bullion’s safe-haven status. Spot gold fell 1.5 percent to $1,768.38 per ounce. U.S. gold futures settled down 1.7 percent at $1,768.30. Silver fell 0.9 percent to $23.32 an ounce but was still headed for its biggest weekly gain in seven. Platinum steadied at $1,055.24, while palladium fell 2.4 percent to $2,078.27. U.S. crude gained 0.82 percent to $81.98 a barrel, back near Monday’s seven-year high of $82.18. Brent crude rose 0.9 percent to $84.78 per barrel.
In European Equity Markets stocks marked their best weekly performance in seven months on Friday, as a bright start to the earnings season helped ease investor concerns about higher inflation. The pan-European STOXX 600 index rose 0.7 percent to close at a one-month high, ending the week with a 2.6 percent gain after a sharp rebound in risk appetite in the past two sessions. German fashion retailer Hugo Boss climbed 1 percent after it raised its outlook for the current year after third-quarter earnings rebounded on the back of strong demand in Europe and the Americas.
In Bond Markets treasury yields rose and a market indication of inflation expectations hit the highest since 2005 on Friday as an unexpected increase in U.S. retail sales in September added to bearish bond sentiment about the path of interest rates. The yield on benchmark 10-year U.S. Treasury notes rose 5.5 basis points to 1.574 percent. The yield on the 30-year Treasury bond was up 2.1 basis points to 2.046 percent. The 10-year TIPS breakeven rate was last at 2.562 percent, indicating the market sees inflation averaging almost 2.6 percent a year for the next decade.