21/10/2026 – Daily Reports

OIL RISES AS MIDDLE EAST RISKS RETURN
  • Oil prices climbed on renewed concerns over Middle East supply disruptions and falling US crude inventories. Brent rose to around $110 per barrel, while WTI approached $99.
  • Japan’s exports increased 16.7% year-on-year in September, driven by demand for semiconductors and AI-related products, although the increase fell short of expectations.
  • French stocks remained under pressure amid domestic political unrest, while US Treasury yields stayed elevated above 5%, keeping borrowing costs and inflation risks in focus.
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OIL INFLATION & EARNINGS SHAPE MARKET SENTIMENT
  • Oil: Brent remains near $110 as Middle East shipping risks sustain supply concerns, keeping inflation fears alive.
  • Equities: Asian stocks rebounded 1.5% on strong corporate earnings, although uncertainty over AI spending continues to threaten technology valuations.
  • Gold & Silver: Gold fell for a fourth session to around $4,118, while silver slipped to $57.44. Rising oil prices are reinforcing expectations of tighter Fed policy and weighing on precious metals.
  • Copper, Platinum & Palladium: Copper’s supply outlook remains supported by structural demand, while platinum and palladium face pressure from weakness across precious metals.
FX Daily: Dollar Weakens as Oil Prices Pose Fresh Risks
  • Dollar Under Pressure: DXY briefly fell to 101.50 amid reports of progress in US–Iran negotiations and lingering AI-related concerns.
  • Euro Faces French Risks: Political unrest and widening bond spreads weigh on the euro. EUR/USD may consolidate between 1.1200 and 1.1250.
  • Sterling Rally Stretches: UK inflation rose to 3.5%, strengthening expectations of BoE tightening, although the pound faces growing correction risks.
  • NZD Outlook Improves: Expectations of a 25-basis-point RBNZ rate hike next week could support further NZD gains against the AUD.
GLOBAL MARKETS | OCTOBER 21, 2026

Fed: Markets expect rates to remain unchanged in October, with a potential hike in December.

 

Equities: Strong corporate earnings support U.S. stocks, while AI investment concerns persist.

 

Gold: Gold trades near $4,135, pressured by rising oil prices and rate-hike expectations.

 

Dollar: The dollar remains firm, while French fiscal and political uncertainty weighs on the euro.