In Asian Equity Markets stocks bounced on Tuesday after Britain scrapped bits of a controversial tax cut plan, tentatively improving global market sentiment and rallying bonds and the pound. In trade thinned by holidays in China and Hong Kong, MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.7 percent. Australia’s central bank added to that sense of relief in markets, surprising investors by lifting interest rates by a smaller-than-expected 25 basis points, saying they had already risen substantially. That lifted the S&P/ASX 200 index by 3.6 percent. Japan’s Nikkei rose 2.8 percent.

In Currency Markets most Asian currencies took some relief from a weakening dollar and rose slightly on Tuesday, while the Australian dollar tumbled after the central bank raised rates by less than expected. The Australian dollar fell 0.8 percent to $0.6466 after the Reserve Bank of Australia raised interest rates by a lower-than-expected 25 basis points (bps). The dollar index and dollar futures both fell 0.1 percent, and marked four straight days of losses. The Japanese yen bucked the trend, falling 0.2 percent and coming close to a 24-year low of around 145 against the dollar.

In US Equity Markets major indexes rallied to close over 2 percent on Monday as U.S. Treasury yields tumbled on weaker-than-expected manufacturing data, increasing the appeal of stocks at the start of the year’s final quarter. The Dow rose 2.66 percent, to 29,490.89; the S&P 500 gained 2.59 percent, at 3,678.43; and the Nasdaq Composite added 2.27 percent, at 10,815.44. Tesla Inc fell 8.6 percent after it sold fewer-than-expected vehicles in the third quarter as deliveries lagged way behind production due to logistic hurdles. Peers Lucid Group gained 0.9 percent and Rivian Automotive fell 3.1 percent.

In Commodities Markets oil prices rose nearly $4 a barrel on Monday as OPEC+ considered reducing output by more than 1 million barrels per day (bpd) to buttress prices with what would be its biggest cut since the start of the COVID-19 pandemic. Brent crude futures for December delivery rose $3.72 to $88.86 a barrel, a 4.4 percent gain. U.S. WTI crude rose 5.2 percent, to $83.63 a barrel. Spot gold rose 2.3 percent to $1,698.48 per ounce, while silver rose 8.8 percent to $20.67 per ounce, its highest since mid-August. Palladium rose 2.9 percent to $2,219.83. Platinum jumped nearly 5 percent to $901.52 per ounce.

In European Equity Markets stocks gained on Monday, in a positive start to the last quarter of this year, as a slew of bleak economic activity data helped ease some jitters around the pace of monetary policy tightening by central banks to stamp out runaway inflation. The region-wide STOXX 600 index reversed earlier session losses to close up 0.7 percent. London’s blue-chip FTSE 100 and mid-caps index also reversed earlier losses to rise 0.2 percent and 0.7 percent respectively as the pound edged up following the UK government’s reversal of its controversial tax cut plans that had wrecked havoc on markets last week.

In Bond Markets the yield on the benchmark U.S. 10-year Treasury note fell on Monday, after British Prime Minister Liz Truss was forced to abandon a tax cut plan while U.S. economic data showed a slowdown in manufacturing. The yield on 10-year Treasury notes was down 13.4 basis points to 3.670 percent. The yield on the 30-year Treasury bond was down 4.3 basis points to 3.721 percent. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was down 8.9 basis points at 4.120 percent.