Stock markets in Asia rose, with the Hang Seng performing well due to strength in tech stocks. Hopes of stimulus in China also contributed to the market’s gains, with the CSI300 up 0.9%. The JPN225 bounced back 1.8% after a strong close on Wall Street. The FOMC minutes released last night were in line with expectations from the September policy meeting. Bond prices remained strong due to expectations that central banks, including the FOMC, ECB, and BoE, will maintain low interest rates. Treasury yields increased slightly due to haven demand and dovish Fed expectations. Bunds outperformed in early trade and Eurozone spreads narrowed. US CPI is forecasted to show small gains for the headline and core, but pressure on core prices is expected to decrease in the future. The USDIndex eased due to the softer Fed view, while the GBP rose 0.2% in August, indicating a weakening economy. Wall Street finished in the green as investors assessed the potential impact of the Israel-Hamas war. USOil prices declined for the third consecutive day, reaching key resistance at $83. Gold broke through $1880 as US rate hike expectations decreased and geopolitical risks increased.
