Hedge funds bet on year-end dollar rally as euro, yen weaken. Funds build tactical FX betsEuropean Central Bank minutes due Thursday, Lane speaking laterFederal Reserve Chair Powell speaks on Thursday. Bowman, Barr, Musalem, Kashkari, Daly tooAUD traders heads up: Reserve Bank of Australia Governor Bullock speaks on FridayHeads up for Bank of England’s Catherine Mann to speak ThursdayBank of Canada Senior Deputy Governor Carolyn Rogers speaks on ThursdayPBOC sets USD/ CNY reference rate for today at 7.1102 (vs. estimate at 7.1484)China’s Commerce Ministry tightens rules on rare earths exportsBOJ will find another rate hike this year difficult, says ex-deputy governorAustralia Consumer Inflation Expectations are rising: October 4.8% (prior 4.7%)US politics shut down thaw? Senate Republicans eye piecemeal government reopeningIsrael cabinet to vote Thursday; hostages could start being freed Monday, White House saysGoldman Sachs says tech rally not a bubble, yet, but warns valuations are stretched.Fox: “Hamas accepts Trump peace plan ending 2 years of war in Gaza, returning hostages”UK housing market, business confidence slump ahead of Reeves’ November budgetTrump says Israel and Hamas have both signed off on the first Phase of our Peace PlanSquare launches Bitcoin payments, urges tax break for everyday crypto useYen intervention risk rockets higher as USD/JPY nears 155 trigger. Line in the sand?Goldman Sachs says stocks aren’t in a bubble yet but risks risingTrump administration drops plan for tariffs on generic drugsDeutsche Bank: Bitcoin and gold could join central bank reserves by 2030Standard Chartered warns of a US$1tn deposit flight from EM banks as stablecoins surgeWhite House says Trump is going to Walter Reed for his regular physical on Friday.Canadian Prime Minister Carney says there’ll some some bilateral deals alongside the USMCAFrance – Macron moves to appoint new PM as France edges away from snap elections.Bank of England flags risk of AI-fueled market correction amid rising global uncertaintyChina returns from holidays today – Chinese markets reopeninvestingLive Americas FX news wrap 8 Oct. Spot gold traded above $4000 for the 1st timeS&P and NASDAQ indices set records once again. Dow industrial average closes unchangedFrench President Macron says is a potential path to a government budget by December 31
The standout development of the session was the Phase 1 agreement reached between Israel and Hamas, marking a tentative step toward easing the war in Gaza. The deal covers a hostage-prisoner exchange and a partial Israeli military withdrawal from the Strip, a welcome if limited sign of progress.
Gold drifted lower ahead of the announcement, slipping further after President Trump posted details of the deal on his social media site, before stabilising just above US$4,000. The metal has since recovered to around US$4,024. Oil prices also softened on optimism that the truce could hold, while the U.S. dollar weakened broadly.
Chinese mainland markets reopened after the long Golden Week holidays. In Beijing, the Commerce Ministry (MOFCOM) announced new export controls on rare-earth materials, requiring foreign entities to obtain approval to safeguard national security and interests.
Asia-Pac
stocks:
Japan
(Nikkei 225) +1.37%Hong
Kong (Hang Seng) -0.1%Shanghai
Composite +1.2%Australia
(S&P/ASX 200) +0.2%
This article was written by Eamonn Sheridan at investinglive.com.