From Marc Chandler at Bannockburn Global Forex:
The US dollar is mixed against the G10 currencies to start the new week. The dollar-bloc and Scandis are firmer, while the euro, Swiss franc, sterling and yen are softer. The euro is weakest after being marked down initially on the social strife in Europe, especially France, the weekend. Peripheral premiums have widened against Germany and is a drag on the euro. On the other hand, equities, including some AI-related names stabilized today. South Korea’s Kospi, which was tagged for nearly 14.5% last week, settled 1.75% higher today, and the Nasdaq 100 futures are up 1%.
China’s Q3 GDP was reported a little stronger than expected (1.2% quarter-over-quarter vs. 0.9% in Q2), though the growth in retail sales (used as proxy for consumption) lagged behind industrial output (used a proxy for exports). The PBOC set the dollar’s reference rate at a new multi-year low. The highlight today’s North American session is Canada’s September CPI and Alberta referendum, where the secessionists appear likely to lose. The Canadian dollar is around a three-and-a-half week high.......Other Markets
• AI-related equities were a drag last week. They are part of the reason South Korea’s Kospi fell almost 14.5% last week. It is off a little more than 20% this month. The Nasdaq Composite was off about 4.5% last week, its second biggest decline since the first week of April 2025 (“Liberation Day”). Europe’s Stoxx 600 gained a little more than 2% last week. Stocks are firmer today, though Japan was narrowly mixed (Topix up, Nikkei down). China, Hong Kong, South Korea and Australia advanced. Europe’s Stoxx is threatening to snap a three-day rally, while US index futures are higher, led by a 1.1% bounce in the Nasdaq futures and 0.50% in S&P futures....
....MUCH MORE
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