Macro update
US relief rally:
Wall Street extended gains after the Senate approved a deal to end the record-long government shutdown, with both the Nasdaq 100 and gold posting their strongest advances in months.
Rate-cut expectations grow:
Investors anticipate that the resumption of US economic data releases will bolster the case for Federal Reserve (Fed) rate cuts, supporting the ongoing rally in risk assets.
Asia tracks Wall Street higher:
Regional markets advanced, led by Singapore’s Straits Times Index hitting an all-time high and South Korea’s KOSPI approaching record territory.
Japan earnings momentum:
Sony raised its profit outlook on robust semiconductor and music revenue, while SoftBank is set to report results amid continued enthusiasm for artificial intelligence (AI)-linked investments.
Currencies and commodities:
The Japanese yen slid to a nine-month low as risk appetite improved, while gold extended its rebound on rising expectations of forthcoming US rate cuts.
FTSE 100 trades in record highs
On Monday the FTSE 100 rallied to a new record high at 9,898, a level which may be surpassed this week with the 10,000 region being in focus.
Immediate bullish momentum should remain in play while Friday’s low at 9,639 underpins.
