Macro update
UK budget in focus:
Sterling extended its five-day advance ahead of today’s UK Autumn Budget, with markets bracing for significant tax rises aimed at reinforcing fiscal credibility.
Asia tracks Wall Street higher:
Regional equities climbed after softer US data strengthened expectations of a Federal Reserve (Fed) rate cut next month, lifting the MSCI Asia-Pacific ex-Japan index by about 1%.
Japan turns more hawkish:
The Japanese yen firmed on reports the Bank of Japan (BoJ) is preparing markets for a potential December rate increase, while short-dated JGB yields rose to their highest levels since 2008.
Antipodean currencies diverge:
The New Zealand dollar jumped after the RBNZ cut rates but removed its dovish bias, while Australian assets gained as hotter inflation data suggested the Reserve Bank of Australia (RBA) may pause further easing.
Oil steadies after swings:
Brent crude oil rebounded from a five-week low as President Trump softened his deadline for Ukraine to accept a peace plan, a shift that could influence Russian supply prospects.
AI fuels mega cap momentum:
Alphabet approached a $4 trillion valuation in pre-market trading, extending a year-long rally underpinned by strong demand for AI-driven products.
S&P 500 rallies from key support
The S&P 500 has shaken off last week’s sharp sell-off as risk-on sentiment dominates this week due to Fed rate cut hopes.
Tuesday’s rise and daily chart close above Thursday’s 6,770 high is technically bullish with the 6,800 region being next in line.
Minor support may be seen around the 55-day simple moving average (SMA) at 6,716.