On Monday (October 30th), there were reports that the Bank of Japan may raise the upper limit on government bond yields, causing the yen to rise, adding a layer of uncertainty as Tokyo policymakers concluded their two-day meeting. The opening of Asian stock markets was mixed.
According to a report by Nikkei (which did not disclose the source), the Bank of Japan (BOJ) is considering allowing the yield of 10-year government bonds to exceed 1%. The news triggered a chain reaction in Asian markets, with stock market futures in Japan and Hong Kong falling. Australian contracts were also affected, but rebounded after major US stock indices rose by more than 1%. Meanwhile, the Golden Dragon index, the largest Chinese company listed in the United States, rose for the third consecutive day.
At the beginning of Monday's Asian trading session, the US futures market remained largely flat. The decline in Australian bond prices has led to an increase of approximately 8 basis points in the 10-year bond yield, reaching 4.95%. After Monday's price drop, oil prices slightly increased.
The yen fell to its lowest level since the beginning of this year last week, with rising yields and persistent inflation stickiness, sparking market speculation that the Bank of Japan will make some adjustments to the yield curve control at its meeting that ends on Tuesday. In early trading in Asia, the currency remained almost unchanged.
Chamath de Silva, senior fund manager at BetaShares Holdings, said, "Policy normalization has to some extent reversed the recent trend of yen weakness, which is unfavorable for the Japanese stock market. The export volume in the Japanese market is particularly large, so the yen is very sensitive
On Monday, the US stock market rose as Israel's ground invasion of Gaza did not seem as widespread as investors were concerned. Against this backdrop, the US stock market rose, led by Amazon, but Tesla's stock price fell by nearly 5%.
At the same time, the increase in oil prices since the outbreak of the Middle East war has been erased as Israel faces increasing pressure to reduce bombings to help negotiate with hostages and limit the conflict in the fourth week.
Tom Essaye, a former trader at Merrill Lynch and founder of The Seven Report, said, "The scale of the action is not as large as people are concerned, which to some extent alleviates geopolitical anxiety. This week will be very busy, as we will welcome the Fed's decisions and important economic and inflation data, while the financial reporting season also enters an accelerated phase
After the US Treasury Department lowered its federal borrowing forecast for this quarter due to stronger than expected income, US treasury bond bonds fell, temporarily recovering some of the decline in the US period.
At the end of Monday's New York session, gold prices fell below the $2000 mark, a decrease of 0.42%, as market participants pared some of last Friday's gains due to concerns that the Middle East conflict could spread in the region. After hitting a daily high of $2006.77, the current trading price of gold is $1997.60.
The Federal Reserve will make its latest interest rate policy decision on Wednesday, and the market generally expects the Federal Reserve to keep its benchmark interest rate unchanged. Due to the continuously rising interest rates
