FISG Daily Market Wrap 5th October

Global Stocks Rally as Softer US Jobs Data Eases Fed Rate-Hike Bets

Global stocks extended gains into Asia as softer US jobs data reduced pressure on the Federal Reserve to continue raising interest rates. MSCI’s Asia-Pacific index gained around 1% following a technology-led rally on Wall Street, while Japan’s Nikkei 225 climbed about 2%. The weaker US jobs report continued to support bonds, with markets pricing less than a 20% chance of an October Fed rate hike. Treasury yields eased modestly, with the US 10-year yield falling around 1 basis point to 5.26%, following a prolonged selloff driven by inflation concerns, heavy public spending and rising corporate borrowing linked to AI investment. Oil prices slipped, with Brent falling around 0.5% to roughly $101.75 a barrel after Saudi Arabia cut prices for its benchmark crude in Asia as supply flows increased. Aramco’s CEO said the company’s maximum oil-production capacity of 12 million barrels per day is available within days. Energy markets remained focused on supply developments across the Persian Gulf and surrounding region. Yemen’s internationally recognized government launched an attack on Houthi positions in the Dhubab district overlooking the Bab El-Mandeb, according to two military sources. The Dollar strengthened against the Euro, with the single currency falling as much as 0.8% to around $1.1161, its lowest level since May 2025. Political uncertainty in Spain added to concerns over Europe’s fiscal outlook, while German bond futures rose and French debt underperformed. US stock futures gave back earlier gains, with S&P 500 futures slipping around 0.1% and Nasdaq 100 futures little changed. European equities were set for a modestly higher open as investors remained alert to signs of stress in the region’s government bond markets. In Japan, parliament is set to open Monday with bills aimed at easing the impact of inflation on households expected to dominate the agenda, as Prime Minister Sanae Takaichi seeks to advance her economic and fiscal plans. The UK is preparing to impose import levies on Chinese electric vehicles to meet a key demand from the European Union, according to The Times of London. The move would affect a group that now accounts for nearly one in four cars sold in the UK. 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