20/10/2026 – Daily Reports
- Oil prices rose as geopolitical risks returned to the forefront. Brent crude approached $110 per barrel, while US crude traded around $104. Markets continued to assess US President Donald Trump’s decision to suspend certain sanctions and tariffs related to Russian energy products, with uncertainty remaining over the final scope of the measures.
- Anti-government protests and incidents over the weekend led to curfews in certain areas of Paris, Lille and Nice. Rising political uncertainty remains a potential source of pressure on French government bonds and the euro.
- US Treasury yields rose in the previous session as technology stocks recovered and safe-haven demand eased. The US 10-year Treasury yield climbed to around 5.14%. Elevated borrowing costs remain a significant risk, particularly for companies financing large-scale AI investments.
- Investors will monitor comments from European Central Bank officials today. Rising energy prices could influence the inflation outlook and interest-rate expectations, while technology earnings and the sustainability of investment appetite across the AI sector remain key market themes.
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Fed: Rates are expected to remain unchanged in October, while December hike expectations remain elevated.
Equities: Asian markets declined, with South Korea’s Kospi down 3.9%. Investors are watching Meta and Tesla earnings.
Oil: Brent is near $109.6 and WTI around $103.9, supported by Middle East risks.
Gold: Gold trades around $4,135. Silver is near $57.2, platinum $1,651 and palladium $1,118.
Dollar: The dollar index is around 101.8, while French political tensions weigh on the euro.
- European Stocks Fall: STOXX 600 dropped 0.6%, extending losses for a second day as semiconductor stocks fell more than 3%.
- Oil Surges: Brent crude climbed above $110 per barrel amid escalating Middle East tensions.
- AI Earnings in Focus: Investors await results from SpaceX, Netflix, Meta and Tesla, with profitability of AI investments under scrutiny.
- FX Markets: The Dollar Index fell to 101.77, while EUR/USD rose to 1.1220. The yen strengthened on strong Japanese bond demand.
- Gold and Crypto Weaken: Gold slipped to $4,122, Bitcoin fell to $81,339 and Ether declined to $2,383.
The Nasdaq Composite rose 1.11% on Monday, recovering from last week’s AI-financing selloff. Amazon gained 5%, Tesla 3.8%, Micron 3% and Nvidia 1.4%. On Tuesday, Nasdaq 100 futures were down about 0.6% on renewed concern over data-centre financing. CoreWeave fell 5% premarket, and Micron, Marvell and Arm were nearly 3% lower. GE Aerospace, General Motors, 3M and Northrop Grumman reported earnings above expectations. Netflix and SpaceX report after the close.
The DAX closed 1.2% lower on Monday after violent weekend protests in France pushed sovereign yields higher. Deutsche Bank fell 3.2% and Commerzbank 2.7%. On Tuesday the index dropped nearly 1% to below 25,100, its lowest since 8 October. Siemens, Infineon, Hochtief and Siemens Energy lost between 2.5% and 3.7%, while SAP rose 1.4%. French 10-year yields neared a 24-year high.
The Nikkei 225 fell 1.3%, a one-month low, as concerns over AI spending and borrowing costs weighed on technology shares. SoftBank Group fell 6%, Fujikura 6.5% and Kioxia 3.4%. Among banks, Mizuho dropped 5% and Mitsubishi UFJ 3.7%. Credit-default swap spreads on SoftBank reached their highest in nearly four years. BOJ Governor Ueda said underlying inflation is close to the 2% target.
Gold fell toward $4,111 per ounce, its third consecutive daily decline. Elevated oil prices, a firmer dollar and higher bond yields weighed on the metal. Markets price roughly a 94% probability of a Fed rate hike in December. The Fed is expected to hold rates at its 27–28 October meeting.
Brent futures rose above $111,96 per barrel, a five-month high and within $3 of the early-May peak. Yemen’s Houthis claimed attacks on Saudi facilities, including an Aramco site in Yanbu and the Shaybah oilfield. Shipping tracker Kpler reported at least 18 vessels attacked over the past two weeks. US Energy Secretary Chris Wright said Persian Gulf oil shipments have recovered to about 80% of pre-war levels.
