Markets · World Listens
MARKET WRAPS Watch For: Services PMI for eurozone, France, Germany, UK; No major trading updates expected Opening Call: European stock futures were higher after Asia stocks were mixed. The yield on U.S. Treasurys fell, the dollar strengthened.
Gold rose and oil fell. Equities: European equity futures rose as a softer than expected U.S. jobs data dimmed the prospects for further rate increases by the Federal Reserve. "The main theme was a reversal towards risk-on sentiment as a sharply weaker-than-expected U.S. jobs report eased fears of further tightening" by the Federal Reserve, Commerzbank Research analysts said.
Markets interpreted the data as reducing the likelihood of another rate hike at the Fed's October meeting." Fed funds futures are pricing in around a 20% probability of a rate increase by the U.S. central bank at this month's meeting, down from close to 30% before the U.S. jobs data release, the analysts added. Forex: The greenback strengthened, with the euro falling against the dollar amid concerns over France's fiscal and political situation. Worries about "France's deteriorating fiscal position, persistent budget deficits and political uncertainty" have caused the spread between French OAT bonds and German bunds to hit its widest since the eurozone debt crisis, said Lee Sue Ann of UOB.
"ECB policymakers are contending with a renewed tightening in eurozone financial conditions stemming from turbulence in the French sovereign bond market," the economist added. Bonds: The yield on U.S. Treasurys were lower, pulling back from recent sharp gains having put equities under more pressure, said Capital Economics' James Reilly.
The rise in yields has brought about some of the poorest returns from most U.S. stocks in years, despite equity risk premia falling to historically low levels and analysts remaining optimistic on earnings, he said. If yields continue to rise, earnings expectations would start to wobble owing to the prospect of higher borrowing costs, he noted. "If yields remain high much longer or rise further, more serious cracks may soon emerge in the stock market," he added.
Energy: Oil prices fell amid signs of attacks around the Strait of Hormuz and the G-7 crude-oil release plan. Any fresh disruption would hit a global economy already grappling with high energy prices and rising borrowing costs. International benchmark oil prices remain around $100 a barrel despite recovering exports, reflecting fears that renewed attacks could again curb flows and keep freight and security costs elevated.
"The step-up in attacks on ships highlights how the current equilibrium in the oil market is fragile and could easily be shattered," said Hamad Hussain, a senior economist at Capital Economics. "This would especially be the case if there is further escalation and energy infrastructure is targeted." Metals: Gold prices were higher, with a softer-than-expected U.S. personal-consumption expenditures reading released end-September likely tempering Federal Reserve rate-hike bets in October, said Société Générale GLE. "The markets priced roughly a 40% chance of an October Fed move, offering gold a tentative foothold as it entered October," SocGen said.
The precious metal's moves appear to be defined by a "tug of war" between structural buyers-central banks and exchange-traded-fund flows-and macro headwinds such as a strong dollar and increased interest rates, SocGen added. Copper gained amid supply concerns. Production in Chile, the world's largest copper producer, fell in August to its weakest since February 2011.
"This may be compounded by strike action, ANZ Research analysts said. Workers at Antofagasta's Centinela mine in Chile voted to strike after wage talks failed, ANZ added. TODAY'S TOP HEADLINES How Gas, Diesel and Electricity Prices Are Squeezing American Voters Gas prices are up.
Electricity bills, too. And diesel prices recently hit record highs. With less than a month until the midterm elections, Americans are facing a multifront squeeze from rising energy prices.
A large portion of higher costs have been driven by the U.S. war with Iran. Many voters say energy prices are top of mind as they head to the ballot box in November. The Mighty American Consumer Is Crashing Through Inflation and Driving Growth CHICAGO-Happy hour at Chicago's Bar Roma was buzzing this past week as locals poured in for $10 cocktails and $11 bruschetta.
Kathleen Harper and her husband would normally share a few appetizers, but tonight they were splurging on the $50 tasting menu. "After a long day-I work from home-I like to just get out of the house," said Harper, who sells fraud-protection services. "Business has been good," she added, "because fraud, unfortunately, is up." She worries about the overall health of the economy and rising prices for gas and groceries, but feels secure enough to enjoy a good happy-hour deal.
Oil Was Pouring Out of Hormuz Again. Then Attacks on Ships Resurged. DUBAI-A new wave of attacks on vessels around the Strait of Hormuz is threatening a recovery in Middle Eastern oil exports-just as Gulf producers have pushed crude shipments back toward prewar levels.
The swift rebound in shipments in recent weeks has been driven by U.S. naval protection and earlier waves of strikes that knocked out Iranian radar and communications along the contested strait. The United Arab Emirates and other producers have set up an elaborate system of shuttle runs in which tankers load inside the Persian Gulf, exit Hormuz and transfer the crude to vessels waiting outside the waterway. These Energy Companies Put Oklahoma City on the Map.
Now They're Moving to Texas. OKLAHOMA CITY-An NBA basketball team. An Olympic rowing facility.
The state's tallest skyscraper. All were lavished on this mid-American city by two oil-and-gas companies and their leaders over decades of investment to lure top talent. Now, the partnership has run into a Texas-shaped wall.
Devon Energy and Expand Energy-the successor of Chesapeake Energy-said in back-to-back announcements this year that they were moving headquarters to a more desirable location: Houston. Write to singaporeeditors@dowjones.com Expected Major Events for Monday 00:01/IRL: Sep Ireland Services PMI 07:00/TUR: Sep PPI 07:00/TUR: Sep CPI 07:15/SPN: Sep Spain Services PMI 07:45/ITA: Sep Italy Services PMI 07:50/FRA: Sep France Services PMI 07:55/GER: Sep Germany Services PMI 08:00/EU: Sep Eurozone Services PMI 08:00/ITA: 2Q General Government Quarterly Accounts 08:00/UK: Sep UK monthly car registrations figures 08:30/UK: Sep UK Official Reserves 08:30/UK: Sep S&P Global UK Services PMI 09:00/EU: Aug PPI 09:00/ITA: 2Q GDP revised 15:59/UKR: Aug Industrial Production All times in GMT. Powered by Onclusive and Dow Jones.
Write to us at newsletters@dowjones.com We offer an enhanced version of this briefing that is optimized for viewing on mobile devices and sent directly to your email inbox. If you would like to sign up, please go to https:\\newsplus.wsj.com/ subscriptions. This article is a text version of a Wall Street Journal newsletter published earlier today. (END) Dow Jones Newswires October 05, 2026 00:15 ET (04:15 GMT) Copyright (c) 2026 Dow Jones & Company, Inc.
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