Oil

• Asian stock markets rose recently as a Bank of Japan interest rate hike boosted Japanese equities and falling oil prices reduced inflation pressure. • Regional performance varied, with India’s Nifty 50 rising 0.2% and Thailand’s SET gaining 0.3%, while the Philippines’ PSEi dropped 1.2%. • These shifts indicate that investors are reacting to central bank policy changes and fluctuating energy costs that impact corporate profitability.

• Asian stock markets rose on Tuesday following a rally in U.S. technology stocks and a drop in oil prices. • South Korea's tech-heavy KOSPI index surged 2%, while Japan's Nikkei rose 0.9% and the broader Asia-Pacific index outside Japan climbed 0.55%. • These gains reflect investor optimism in the tech sector and a reaction to fluctuating currency values ahead of the Bank of Japan meeting.

• European stock markets rose on Tuesday as oil prices declined and government bond yields remained steady. • The Toronto Stock Exchange ended the session lower following a Federal Reserve interest rate hike that dampened investor sentiment. • Minutes from the Bank of Canada's September meeting revealed that officials viewed inflation risks as remaining elevated.

• European stocks rose following a Federal Reserve interest rate hike as oil prices fell and bond yields stabilized. • Sweden’s benchmark index climbed 1.1 per cent, while spirits maker Berentzen jumped 19.4 per cent after confirming takeover talks with Sazerac. • E-commerce platform Allegro shares rose 9.5 per cent after the company beat second-quarter guidance and raised its 2026 forecasts.

• President Trump will meet with Persian Gulf leaders in New York next week during the United Nations General Assembly to discuss postwar strategy for the region. • U.S. officials also met over the weekend with representatives of Yemen's Ansar Allah, known as the Houthis. • These diplomatic efforts occur as the U.S. manages military and economic crises in the Middle East following a war on Iran.

• A Saudi-led coalition shot down a Houthi drone near Mecca on Tuesday amid ongoing regional instability. • The United States embassy issued a travel advisory urging citizens to reconsider traveling to Saudi Arabia following alerts in Mecca and other areas. • UN Secretary-General Antonio Guterres called for urgent de-escalation to protect civilians and restore freedom of navigation in the Red Sea and the Strait of Hormuz.

Joanna Wietrzyk ‘regrets’ decision to keep racing She forfeits points from her win in the Beijing raceGet our new political email, free app or daily news podcastThe Australian athlete who caused a storm by winning a Hyrox event in China despite soiling herself during the race has apologised to the “people of China” and rival athletes in a statement online.Posting on Instagram, Joanna Wietrzyk, said she offered a “sincere apology” to the “people of China, my fellow competitors, the spectators and the Hyrox organizers for what happened during the race in Beijing”. Continue reading...

• US stocks traded mixed on Wednesday as investors awaited an interest-rate decision from the Federal Reserve. • The S&P 500 and Nasdaq rose while the Dow fell, with easing oil prices providing relief after a two-day decline. • Market volatility reflects investor concerns over inflation, high yields, and tensions in the Middle East.

• The Dow Jones Industrial Average rose 250 points as markets recovered from a sell-off following a Federal Reserve interest rate decision. • The Federal Reserve raised the overnight funds rate by a quarter percentage point and indicated that another rate hike could occur this year. • Treasury yields declined, with the 10-year yield dropping more than 5 basis points to 4.949% after previously crossing the 5% threshold.

• Stock futures rebounded recently following a selloff triggered by Federal Reserve policy signals. • Analysts suggest that current market expectations for additional interest rate hikes through 2027 are likely overdone. • A projected drop in bond yields could provide a catalyst for growth in the stock markets.

• Rising oil prices, interest rates, and bond yields are creating a stagflation environment, which is a period of slow economic growth combined with high inflation. • Higher interest rates are expected to push squeezed consumers to save more and spend less. • This shift in consumer behavior deprives domestic economies of necessary spending, potentially slowing overall market growth.

• A Reuters poll shows that investors are increasing bearish bets on several emerging Asian currencies, including the Philippine peso, Thai baht, Indian rupee, and Malaysian ringgit. • This market shift follows oil prices rising above $100 a barrel and an increase in US Treasury yields. • These conditions put downward pressure on regional currencies, potentially increasing import costs and inflation for these emerging markets.

• Asian stocks steadied on Tuesday after four days of losses as investors awaited an interest rate decision from the US Federal Reserve. • The MSCI regional equities gauge climbed 0.1%, while Japan's Topix rose 0.8% and the Shanghai Composite fell 0.3%. • Market participants are positioning for the first US interest rate hike since 2023, which typically influences global investment flows and borrowing costs.

In today’s newsletter: The Houthi advance along the Red Sea coast raised fears for global trade and energy supplies, while more than 100,000 Yemenis have been displaced by the fightingGood morning. The lightning advance of Houthi militants along the west coast of Yemen over the past week has prompted fears of a spiralling conflict in the region and a new oil supply crisis.For families living in the Middle East’s poorest country, the most significant fighting between the Iran-aligned Houthis and the Saudi-backed Yemeni government forces in years is a crisis upon a catastrophe, with escalating civilian casualties and at least 100,000 displaced in recent days.UK politics | Key allies of Andy Burnham have warned the prime minister not to back down over his promises to put water companies under public control, after details emerged about the prime minister’s plan to give mayors more oversight of the industry.Environment | Climate breakdown probably weakened the glacier that collapsed causing catastrophic floods and killing hundreds of people in Nepal and Tibet last month, the first scientific study of the disaster has found.Health | Women with the same medical condition as men are less likely to be offered treatment such as surgery, a stent or a strong painkiller, research has found.Europe | The UK government’s EU reset summit will be delayed again unless the bloc agrees to discuss legislation that could lock British business out of parts of EU industry, government sources have said.UK news | Police searching for a three-year-old boy who went missing from a playground on the Suffolk-Essex border have found a body. Continue reading...

• UN Secretary-General Antonio Guterres called for urgent de-escalation and a return to diplomacy across the Middle East to protect civilians and humanitarian operations. • The appeal follows threats to oil supplies and disruptions to freedom of navigation in the Strait of Hormuz, the Red Sea, Yemen, and Gaza. • Continued instability in these maritime corridors risks deepening global energy crises by interrupting the flow of oil.

• US oil prices and 10-year Treasury yields have begun moving in sync, increasing financial pressure on consumers and businesses. • The one-month rolling correlation between front-month WTI oil futures and 10-year government bond yields reached 0.96, the strongest relationship since June 2019. • This alignment creates a new inflation shock that puts additional strain on financial markets.

• Oil prices and 10-year Treasury yields are moving in near lockstep, reaching their strongest correlation since 2019. • Ed Yardeni of Yardeni Research noted that rising oil prices signal higher bond yields and increased inflationary expectations. • This trend threatens growth and technology stocks because their valuations rely on earnings expected far into the future.

• U.S. stocks declined on Tuesday as rising oil prices and bond market volatility increased pressure on Wall Street. • Higher bond yields increase the cost of borrowing for the U.S. government, households, and businesses. • These conditions slow the overall economy and make investors less likely to pay high prices for stocks when safer bonds offer better returns.

• The STOXX Europe 600 index rose 0.4% on Wednesday as European stock markets stabilized. • Investors paused trading activity to wait for the Federal Reserve's upcoming decision on interest rates. • Market stability occurred as oil prices cooled, reducing volatility for investors and traders.

Ministers given emergency briefing about changes to algorithm decisions just three days before tool rolloutGet our breaking news email, free app or daily news podcastSenior department of health officials were in turmoil before the rollout of an algorithm to determine funding packages for older Australians, after discovering legislation had been drafted so rigidly that the tool could not legally be overridden by aged care assessors.Emails published under freedom of information (FoI) by the department of health, disability and ageing show that, despite assessors long receiving reassurance from the department that they would have powers to change incorrect algorithm decisions, officials realised at the 11th hour this would violate proposed regulations. Continue reading...

• Stock futures rose while oil prices and bond yields fell ahead of the Federal Reserve's scheduled interest rate decision this Wednesday. • The Federal Reserve is expected to implement its first rate hike in three years because the bond market has signaled for weeks that higher rates are warranted. • A failure to raise rates could disappoint the stock market and conflict with current bond market signals.

• Stock futures declined as oil prices and U.S. 10-year Treasury yields continued to rise. • Asian stocks fell and UniCredit shares dropped as much as 2.9% after RBC Capital Markets issued a sector perform rating. • Higher borrowing costs and energy prices are creating headwinds for financial markets and dragging down the Nasdaq and Russell indices.

Exclusive: Plastic surfaces form hotspots with an increase of antibiotic-resistant genes, study findsMicroplastics act like a “Trojan horse” delivering pollutants, pesticides and bacteria through the soil, a five-year multinational research project has found.The EU-funded project, which has so far resulted in 22 peer-reviewed studies, found microplastics in the soil of all 227 agricultural fields it tested across 11 European countries. The researchers said this poses a global threat, with healthy soils essential for life on Earth. Continue reading...

• Asian stock markets remained steady recently as a rebound in artificial intelligence shares balanced out pressures from rising oil prices and bond market volatility. • Crude oil prices have climbed firmly above $100 per barrel amid an intensifying conflict in the Middle East. • High energy costs and persistent global price pressures limit the ability of policymakers to lower interest rates in the near term.

• Stock futures declined as bond yields and oil prices continued to rise. • Market pressure is driven by a conflict between healthy corporate profits and countries running large budget deficits. • Rising bond yields typically lower the valuation of tech and growth stocks, creating volatility for investors in those sectors.

The militant group in Yemen captured the islands of Greater and Lesser Hanish, near the chokepoint of the Bab al-Mandab straitYemen’s Houthi rebels have seized two strategic islands in the Red Sea, reinforcing the Iran-backed group’s ability to control a key shipping route, as concerns mount that the world is facing a new oil supply crisis.The seizure of the islands of Greater and Lesser Hanish is the latest in the militant group’s swift advance across Yemen’s Red Sea coast, after the capture of the port of Mokha and Perim island in the Bab al-Mandab strait. Continue reading...

• Technology stocks fell worldwide on Monday after artificial intelligence industry leaders warned that a slowdown is necessary for safety. • South Korea's Kospi index dropped 3.3% following losses for major stocks Samsung Electronics and SK Hynix, while GE Vernova sank 7.3%. • The decline affected not only AI developers but also power companies that electrify data centers, reflecting market volatility over AI growth.

• An oil tanker exploded and caught fire on Monday after colliding with mines in the Strait of Hormuz amid escalating US-Iran tensions. • S&P 500 futures dropped 0.7% and Nasdaq futures fell 1.6% as the incident raised risks for global energy supplies. • President Donald Trump stated he expects the conflict with Iran to end this year, potentially shortly after the US midterm elections.