Sell-side analysts indicated that global earnings growth is expected to remain solid heading into the upcoming reporting season, providing broad-based support to equities despite the backdrop of elevated bond yields.

Luxury names were among the standouts: LVMH gained 1.2% ahead of its third-quarter revenue release, and Hermès advanced more than 2%, underscoring a strong session for the sector. Banks also saw some relief, with Santander, BBVA, and ING each adding close to 2%.

In contrast, ASML fell 1.5% amid a wider pullback in stocks tied to AI infrastructure. Looking ahead, investors are focused on earnings from the Eurozone’s largest economy, which are due later this week.

Energy stocks moved higher as well, as oil prices climbed on renewed geopolitical tensions. Shell gained 1%, with attacks in Ukraine and Saudi Arabia reigniting concerns over regional energy security. Unilever added more than 1%, further underpinning the broader index.

In contrast, Informa slipped more than 1% ahead of its Global Health Exhibition in Riyadh later this month. The stock came under pressure following Houthi attacks on Saudi Arabia’s main airport over the weekend and updated UK travel advisories for parts of the country.

At the same time, tensions escalated in Saudi Arabia, where authorities reported additional drone and cruise missile attacks following a deadly weekend strike on Riyadh’s airport. The Saudi-led coalition also cited further assaults linked to Iran-backed Houthi militants in Yemen. Separately, tanker attacks in the Strait of Hormuz fueled anxiety over shipping security, even as crude exports from the Persian Gulf remained relatively robust.

By contrast, prices accelerated in several sectors, including transport and warehousing (5.01% vs 4.59%), real estate activities (4.45% vs 4.18%), lodging and food services (2.68% vs 2.61%), and professional, scientific and technical activities (1.57% vs 1.56%). Healthcare prices rebounded, rising 0.75% after a 0.07% decline in August.

Education prices were stable at 2.39%, and prices in information and telecommunications showed no change. Producer prices continued to fall in water supply, sewerage and waste management, which recorded a 0.15% decline.

Sentiment was further lifted by reports of potential IPOs by Anthropic and OpenAI, as well as new capital-raising rounds by SoftBank and SpaceX, both of which have been investing heavily in infrastructure. Tin consumption has remained resilient, underpinned by electrification initiatives and continued build-out of AI infrastructure, reflecting the metal’s extensive applications in data centers and battery storage systems.

Tin’s crucial function in precision soldering across AI hardware has led industry participants to project that tin demand from AI servers could triple by 2030. On the supply side, exports from Indonesia, a key producer, remained tight as Jakarta scaled back the issuance of export licenses.

Across major economies, brokers issued buy recommendations across a range of sectors ahead of the September-quarter earnings season, signaling that companies have continued to deliver solid earnings growth despite the backdrop of higher interest rates. However, both energy prices and bond yields remained elevated as the war in the Middle East continued, keeping alive the risk of further Federal Reserve rate hikes this year.

Most sectors finished higher, with Meta and Salesforce gaining roughly 2% and 5%, respectively, in a strong session for software application names. By contrast, Micron, AMD, and Marvell each declined around 3%, as AI infrastructure stocks continued to trade with heightened volatility.

The marginal drop suggests a modest increase in demand for short-term French government debt or a slight shift in market expectations for near-term interest rates. While the move is small, it indicates that investors continue to view French short-term paper as a relatively stable parking place for liquidity, even as broader European rate dynamics remain in focus.

The 6-month BTF is a key barometer for short-term funding costs for the French state. The latest auction result will be closely watched by fixed-income investors as they assess the path of euro area monetary conditions and sovereign funding costs going into the next quarter.

While the movement is small, the lower yield suggests marginally stronger demand or improved funding conditions for France at the very short end of the curve. The 3-month BTF is a key barometer of immediate market sentiment toward French sovereign risk and euro-area money market conditions, and the latest auction points to a stable, slightly more favorable environment for France’s short-term borrowing.

While the move is small, the lower yield suggests investor demand for French short-term government paper remains solid, allowing the state to refinance at slightly more favorable conditions than at the prior auction. Market participants will now be watching whether this minor downward trend in 12-month BTF yields continues, potentially signaling a stabilisation or softening of short-end funding rates for France.

From next year, the EU will cap annual imports of Chinese hybrid electric vehicles at 350,000 units. According to the European Commission, this measure is expected to cut China’s market share in the bloc by half, reducing orders from regional battery manufacturers, particularly after recent data revealed lithium inventories were higher than previously thought.

Industry group SMM revised its methodology for calculating inventory, resulting in a 175,000-tonne upward adjustment to Chinese lithium stockpiles—roughly double earlier estimates. This reassessment has coincided with a more favorable outlook for Australian suppliers. Mineral Resources has restarted production at the Bald Hill lithium mine after an 18‑month suspension, while Core Lithium has resumed operations at its Finniss project.

The upturn was led by manufacturing, where output growth strengthened to 3.2% from 1.6% in July, supported in particular by a further jump in the production of petroleum and coal products (21.4% vs. 14.7%). Construction activity also gained momentum, expanding 7.5% after a 7.3% increase in the previous month, driven by a sharp acceleration in civil engineering works (17.6% vs. 2.4%).

By contrast, mining output fell 0.8%, reversing July’s 1.6% gain. The decline reflected a steep contraction in mining-related services (-7.3% vs. +26.0%) and a slight drop of 0.1% in petroleum and gas extraction, compared with a 1.6% increase in July.

On a monthly, seasonally adjusted basis, industrial production rose 0.6% in August, up from a 0.5% increase in July.

The previous reading for the first quarter of 2026, at -$15 million, had suggested a relatively contained imbalance, but the fresh data for the second quarter points to increased pressure on the current account. The shift, while not dramatic in absolute terms, may reflect evolving dynamics in Egypt’s trade, income, or transfer flows over the quarter.

The updated figures, released on 12 October 2026, will likely feed into market assessments of Egypt’s external stability and could inform policy discussions on how to address the widening deficit in the coming quarters.

The latest reading means industrial activity has now strengthened for a second consecutive month, with August’s performance building directly on July’s gains. On a month-over-month basis, the “actual” August figure reflects the change from July, while the “previous” July indicator shows the change from June, highlighting a gradual firming in momentum across the mid-summer period.

While the increases remain moderate, the back-to-back advances suggest that Mexico’s industrial sector maintained a steady recovery path as of late Q3 2026. Market participants will be watching upcoming releases closely to see whether this incremental growth can be sustained into the final months of the year.

The data are reported on a year-over-year basis, comparing the change in August 2026 output to August 2025, while the previous reading compared July 2026 to July 2025. The step-up from 2.7% to 3.5% suggests improving conditions in Mexico’s industrial base, potentially reflecting resilient external demand and a stabilizing domestic environment.

Investors and analysts will be watching subsequent releases to determine whether August’s stronger performance marks the beginning of a more durable upswing in industrial activity or a temporary boost within a still-fragile global backdrop.

Across major economies, brokers issued buy recommendations across a range of sectors ahead of the September-quarter earnings season, signaling that companies have largely maintained solid earnings growth despite higher interest rates. However, energy prices and bond yields remained elevated as the conflict in the Middle East continued, reinforcing the risk of additional Federal Reserve rate hikes later this year.

Most major stocks traded higher in premarket activity. Meta gained about 2% and Salesforce rose roughly 4%, leading a strong session for software application names. In contrast, Micron, AMD, and Marvell each declined around 2%, as AI infrastructure-related stocks continued to exhibit heightened volatility.

M3, which typically includes currency in circulation, demand deposits, and time deposits, is a key gauge of overall money supply and banking sector depth. The uptick from 16.6% to 16.9% suggests that monetary conditions remain accommodative, with banking deposits and money available in the economy still growing at a robust pace.

While the data release does not provide details on the drivers of this acceleration, the sustained high growth in M3 will be closely watched by markets and policymakers for its implications on credit growth, inflation dynamics, and the broader trajectory of India’s economic activity.

In Ivory Coast, the world’s largest cocoa producer, the national weather agency forecasts below-average rainfall through early 2027. As West Africa accounts for more than half of global cocoa output, this heightens the vulnerability of international supplies to adverse weather in the region.

StoneX Group projects that Ivory Coast’s cocoa production will drop by 11% to 1.8 million tonnes in the 2026–27 season. Ghana, the second-largest producer, also anticipates a decline, with output expected to fall by about 13% to 650,000 tonnes. Meanwhile, estimates indicate that cocoa arrivals at Ivorian ports have reached 77,500 tonnes so far since the start of the 2026–27 season.

The dollar hovered near an 18‑month high, supported by ongoing tensions in the Middle East and caution ahead of this week’s US consumer and producer price releases, as well as retail sales figures. Any upside surprises in these reports could bolster expectations for tighter monetary policy, driving Treasury yields and the dollar higher and exerting additional downward pressure on gold.

Markets have pared back expectations for a Fed rate hike this month, with futures pricing in less than a 20% chance of an increase, while assigning about an 85% probability of a move by December, according to CME’s FedWatch tool.

Investors will also be closely watching this week’s IMF–World Bank annual meetings for further guidance from global central bankers on the broader monetary policy outlook.

Food prices rose 5.97% year-on-year, with onion prices more than doubling and sharp increases also recorded for ginger (62.9%) and garlic (54.6%). At the same time, higher international oil prices, coupled with a weakening rupee, pushed transportation inflation up to 5.01%. Strong price growth was also seen in services, notably restaurants and accommodation (9.36%) and personal care and social protection (13.75%). On a month-on-month basis, the Consumer Price Index increased by 0.69%.

Both readings are calculated on a year-over-year basis, comparing each month with the same month a year earlier. While August’s 4.82% figure pointed to some moderation in inflation at that time, the September print at 5.54% signals a renewed pickup in price growth as the third quarter draws to a close.

The move from 4.82% to 5.54% YoY will likely refocus attention on the inflation trajectory in Asia’s third-largest economy, as investors and analysts reassess how persistent price pressures may shape India’s macroeconomic outlook going into the final months of 2026.

By destination, exports increased to the European Union (up 11.6%), CIS countries (up 10.9%), and other countries (up 8.7%).

Imports rose at a faster pace, climbing 16.2% to EUR 2,094.2 million, driven by stronger purchases of mineral fuels, oil and refined products (up 52.1%), electrical appliances and equipment (up 21.6%), and land vehicles and parts (up 22.1%). Imports increased notably from the European Union (up 14.2%) and from other countries (up 30.4%), while they declined from CIS countries (down 33.1%).

Over the January–August period, Latvia’s trade deficit reached EUR 2,754.4 million, widening from EUR 2,370.4 million in the corresponding period of the previous year.