Global stock markets were weighed down during the week by Middle East geopolitical risks, questions over the financing of AI investment and mixed earnings. Total market value across global exchanges fell by more than $1 trillion.
Oil and yields move in opposite directions
December-delivery Brent crude closed the week at $116.9 a barrel, up 6.5 percent, and approached $117 at its peak. The US 10-year Treasury yield ended the week at 5 percent, down 8 basis points. It fell below 5 percent on Thursday for the first time in about a month.
Bond selling in France pushed its 10-year government yield to 5.07 percent, the highest since 2002. Street unrest threatening public finances drove the move.
Central banks in focus
Attention now turns to rate decisions from the Federal Reserve, the European Central Bank and the Bank of Japan. The Fed is expected to hold its policy rate, and its decision and a speech by Kevin Warsh are scheduled for the following Wednesday. The ECB main policy rate is expected to be held at 3 percent.
German producer prices rose 1.9 percent month on month in September and 6.7 percent year on year, the fastest pace since March 2023.
Gold and equities slip
Gold closed the week at $3,995 an ounce, down 4.1 percent, and fell below $4,000 on Friday for the first time in about three months. The US dollar index closed at 101.8.
The S&P 500 fell 0.47 percent over the week, the Nasdaq 0.71 percent, while the Dow Jones rose 0.41 percent. Meta reported third-quarter revenue of $64.6 billion, up 26 percent, and net profit of $9.9 billion. Tesla’s net profit fell 43 percent to $787 million.
Related: US 30-year Treasury yield nears 5.5% in global sell-off
Source: European Central Bank
