FISG Daily Market Wrap 30th September

Markets Stabilize as Oil Supply Concerns Ease

Asian stocks rebounded as markets recovered from a recent selloff, while bonds steadied ahead of key US inflation data that could provide further clues on the Federal Reserve’s interest-rate outlook. MSCI’s Asia Pacific Index rose 1%, putting it on track for its strongest gain in three weeks, while US and European equity futures also pointed higher. Australian inflation cooled in August despite higher fuel costs, prompting traders to reduce expectations for another Reserve Bank rate hike. Meanwhile, Federal Reserve Bank of New York President John Williams said one more rate increase “late this year” could be appropriate to help contain inflation. Oil prices also stabilized after Tuesday’s sharp decline. Brent crude rose 0.6% to around $103.19 a barrel as signs of improving Middle East supply reduced some pressure on the market. Saudi Arabia has resumed flows through a pipeline that bypasses the Strait of Hormuz, while estimates from JPMorgan and Goldman Sachs suggest regional oil flows are moving closer to pre-war levels despite continued shipping risks across the Persian Gulf. Bond markets remained under pressure after long-dated Treasury yields reached their highest levels in decades. The US 10-year yield held around 5.23%, while the 30-year yield reached 5.56% after rising for a sixth consecutive session. Persistent inflation concerns, higher government spending and increased corporate borrowing linked to AI investment continued to weigh on longer-dated debt. The Dollar was also on track for its strongest monthly performance since June as investors continued to assess the outlook for inflation and interest rates. In China, factory activity expanded for the first time since June, offering signs of improved economic momentum as policymakers prepare additional measures to support growth. However, Chinese property stocks declined after Beijing introduced a mortgage subsidy program that analysts viewed as less supportive than expected. In technology, SoftBank Group gained more than 6% following reports that OpenAI is seeking to raise at least $30 billion at a valuation of $1.4 trillion. FISG Daily Market Wrap provides a concise view of the forces moving global markets, helping investors stay informed and better prepared for what comes next. FISG — Interstellar Group