Overnight
US Treasury yields stabilised yesterday after the sharp drop that marked 23 September. The two-year hold near recent lows as traders adjust positioning ahead of the Federal Reserve's 27–28 October decision. Gilt and Bund futures edged firmer in early London trade. Sentiment among carry-trade unwinders has shifted from panic to caution, though appetite for duration remains subdued. Market participants weighed data flow expectations against near-term volatility triggers.
Asia and Europe
Hong Kong opens the Golden Week period with Mainland visitation expected to reach approximately 1.29 million travellers over the seven-day break from 1–7 October. Singapore property saw modest inflows; regional equity indices awaiting US and China data calendars later this week. European opens will show if overnight US technicals hold. Hotels and restaurants across the city prepare for the surge in activity and spending. Tax trading patterns shifted ahead of the long break.
FX, rates and commodities
The yen held steady against the basket despite thin trading volumes. Oil traced the broader risk tone. Gold near its recent highs, benefiting from rate expectations and safe-haven demand from global investors. Copper awaiting fresh China PMI data, expected later in the week. No fresh central bank speakers today, but Fed communications will remain a shadow on markets. Energy markets balanced supply concerns against weakening demand forecasts.
The day ahead
Asian trade desk flows will be lighter as markets thin for holidays. The Hong Kong Jockey Club and major venues prepare for the 8pm New Year fireworks display marking the start of National Day celebrations. Mainland trading volumes expected compressed due to the extended break. Early trades will set the tone for the week ahead.
One number
31,888 — the number of fireworks shells scheduled for tonight's Hong Kong display, signalling both civic celebration and a test of city services during the start of Golden Week. The display will be the largest in recent years.
One read
Familiar wealth managers are briefing family offices on allocation shifts in light of recent volatility. The Citi 2026 Family Office Report published 29 September offers a guide to positioning trends among the clientele tracking this market. Rising interest rates continue to reshape allocation decisions across the region.
