In Asian Equity Markets indices were mixed on Monday morning following the release of data Sunday that showed a slowdown in China’s manufacturing sector. The Nikkei 225 continued its advance to trade 0.54 percent higher while the Topix remained lower by 0.14 percent in the morning, as major automakers such as Toyota and Nissan all saw declines. Meanwhile, in South Korea, the Kospi lost its earlier gains to trade lower by 0.28 percent, despite a private survey showing factory activity expanding in September for the first time since March 2018.
In Currency Markets the US dollar fell against the Canadian dollar on Monday as the United States and Canada reached a framework deal to update the North American Free Trade Agreement. The Canadian dollar rose about 0.7 percent, reaching a four-month high of C$1.2814, before giving up some gains. It last traded at C$1.2836. The loonie added to the previous session’s gains of more than one percent. Mexico’s peso currency strengthened to a seven-week high versus the dollar, at one point gaining about 0.85 percent to 18.54 per dollar.
In Commodities Markets brent crude oil prices hit their highest level since November 2014 on Monday ahead of U.S. sanctions against Iran that kick in next month. Brent crude oil futures were trading at $83.24 per barrel, up 51 cents, or 0.3 percent, their highest level since November 2014. U.S. West Texas Intermediate (WTI) crude futures were up 37 cents, or 0.5 percent, at $73.62 a barrel. WTI prices were supported by a stagnant rig count, which points to a slowdown in U.S. crude production.
In US Equity Markets indices declined on Friday, the last trading day of the third quarter, weighed by shares of U.S. lenders as Italy’s budget worries roiled financial markets and trade concerns hurt sentiment. Eight of the 11 major S&P sectors were in the red, with the financials weighing the most with a 0.76 percent decline. Nvidia gained 3.4 percent, the most on the S&P 500, after Evercore ISI hiked PT, citing increasing value as a platform company. The S&P 500 was down 0.14 percent, at 2,909.91 and the Nasdaq Composite was down 0.26 percent, at 8,020.79.
In Bond Markets U.S. Treasury yields fell on Friday as the $15.3 trillion bond sector recorded its worst month since January due to rising government debt supply and sturdy economic data that have enabled the Federal Reserve to keep raising interest rates. Benchmark 10-year Treasury yields were marginally lower at 3.056 percent. On Tuesday, they reached 3.113 percent, the highest since May. Their German counterpart fell to 0.474 percent, down over 5 basis points, which was its biggest one-day fall in almost a month.