Macro update
US jobs report in focus: September non-farm payrolls are expected to show employment growth slowing to around 90,000 from 162,000 in August, while unemployment is forecast to hold at 4.1%. The figures will be closely watched for signals on the Federal Reserve’s next policy move.
Treasury yields stay elevated: The US 10-year yield briefly climbed to 5.34%, its highest level since 2002, before retreating towards 5.25%. Higher oil prices, persistent inflation concerns and fiscal pressures continue to weigh on global bond markets.
Asian stocks remain under pressure: Asian equities fell ahead of the US employment data, with Hong Kong shares particularly weak and Japanese stocks also declining. Recent bond-market volatility and a stronger dollar are keeping investors cautious.
Dollar climbs to 17-month high: The US currency extended its advance as investors favoured the greenback amid the global bond sell-off and concerns over European fiscal risks. Sterling and the euro both weakened, with the euro falling to its lowest level since May 2025.
Oil holds above $100: Brent crude remained above $100 a barrel as Middle East tensions and uncertainty surrounding US-Iran negotiations kept supply concerns elevated. Higher energy prices are also adding to inflation pressures and weighing on bond markets.
Gold remains under pressure: Gold slipped towards $4,155 an ounce and was heading for a second consecutive weekly decline as a stronger dollar and elevated Treasury yields reduced demand for the non-yielding metal. The US jobs report represents the next major test for its near-term direction.
