Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
China’s Services Sector Posts Slowest Growth in Five Months as Demand Softens 
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Dollar Holds Steady as Markets Shift Focus to 2026 Rate Cut Expectations 
Asian currencies gained ground on Monday while the US dollar slipped as investors turned cautious ahead of a looming deadline that could trigger a partial U.S. government shutdown. Market focus also remained on key monetary policy decisions this week from the Reserve Bank of Australia (RBA) and the Reserve Bank of India (RBI).
The US Dollar Index, which tracks the greenback against a basket of major peers, fell 0.2% in early Asian trade. Futures linked to the index also traded lower by the same margin at 04:17 GMT. Investors are closely watching whether Congress can pass a funding bill before the fiscal year ends, with failure likely resulting in a shutdown beginning Wednesday. U.S. President Donald Trump is set to meet lawmakers later Monday in a bid to avert the crisis.
A shutdown would immediately impact government operations and financial markets, particularly delaying crucial economic data such as the September nonfarm payrolls report, due Friday. Market participants fear prolonged disruption could weigh on investor sentiment and increase volatility.
Asian foreign exchange markets strengthened as traders speculated that U.S. political uncertainty may drive near-term outflows from U.S. assets. The Japanese yen rose 0.4% against the dollar, while the Singapore dollar gained 0.1%. The South Korean won advanced 0.4%, and the Indonesian rupiah firmed 0.3%. Both the onshore and offshore Chinese yuan also edged higher, with USD/CNY down 0.2% and USD/CNH falling 0.3%.
Meanwhile, the Australian dollar climbed 0.3% ahead of Tuesday’s RBA meeting, where rates are widely expected to remain unchanged at 3.6%. The Indian rupee traded flat near record lows, with investors awaiting the RBI’s decision later this week. Analysts largely expect no change to the policy rate, currently at 5.50%, though some see room for a surprise cut.
With U.S. political risks and central bank outcomes in focus, global markets are bracing for heightened volatility in the week ahead.
