China's Golden Week Holiday Sales Disappointed Investors, HSBC Proposed to Privatize Hang Seng Bank

Benchmark indexes in Hong Kong and mainland China faced headwinds amid tepid retail sales data for the Golden Week holiday period. 

The Hang Seng Index and the CSI 300 Index inched higher after investors returned from a weeklong holiday in mainland China. 

Investor sentiment remained cautious after the Commerce Ministry said retail and food and beverage sales in the first four days of the Golden Week holiday rose 3.3%. 

That increase was slower than 6.3% during the Labor Day holiday in May and lower than the 3.4% increase in retail sales in September. 

The weak increase in retail and food and beverage sales confirmed that consumption is not likely to provide support for the economic growth in the second half. 

China Indexes and Stocks 

The Hang Seng Index edged up 0.03% to 26,819.01, and the mainland-focused CSI 300 index inched higher 0.04% to 4,715.47. 

Hang Seng Bank Ltd. soared 26% to HK $150.30 after HSBC proposed to take the company private for HK $155 per share. 

HSBC Holding plc declined 6.3% to HK $103.0. 

Trip.com Group Ltd. rose 1.6% to HK $560.0 after the National Day and Mid-Autumn Festival tourism market witnessed an increase in volume and prices. 

Chinese tourists preferred Japan, Thailand, Malaysia, and Singapore for international travel, and Beijing, Shanghai, Chengdu, and Xian remained popular for domestic travel. 

China's Golden Week Holiday Sales Disappointed Investors, HSBC Proposed to Privatize Hang Seng Bank

Benchmark indexes in Hong Kong and mainland China faced headwinds amid tepid retail sales data for the Golden Week holiday period. 

The Hang Seng Index and the CSI 300 Index inched higher after investors returned from a weeklong holiday in mainland China. 

Investor sentiment remained cautious after the Commerce Ministry said retail and food and beverage sales in the first four days of the Golden Week holiday rose 3.3%. 

That increase was slower than 6.3% during the Labor Day holiday in May and lower than the 3.4% increase in retail sales in September. 

The weak increase in retail and food and beverage sales confirmed that consumption is not likely to provide support for the economic growth in the second half. 

China Indexes and Stocks 

The Hang Seng Index edged up 0.03% to 26,819.01, and the mainland-focused CSI 300 index inched higher 0.04% to 4,715.47. 

Hang Seng Bank Ltd. soared 26% to HK $150.30 after HSBC proposed to take the company private for HK $155 per share. 

HSBC Holding plc declined 6.3% to HK $103.0. 

Trip.com Group Ltd. rose 1.6% to HK $560.0 after the National Day and Mid-Autumn Festival tourism market witnessed an increase in volume and prices. 

Chinese tourists preferred Japan, Thailand, Malaysia, and Singapore for international travel, and Beijing, Shanghai, Chengdu, and Xian remained popular for domestic travel. 

Gold Surged to Record High as Shutdown Entered Second Week

Stocks in New York attempted to rebound after a week of lackluster trading amid growing worries about the stretched valuation of tech stocks. 

The S&P 500 index inched up 0.1%, the tech-heavy Nasdaq Composite edged up 0.3%, and the yield on 10-year U.S. Treasury notes edged lower to 4.103%.

Gold surged 1.3% to $4,031 an ounce, and the price of the yellow metal crossed $4,000 for the first time as investors sought a safe haven asset. 

Investor anxieties are high amid mounting concerns about the U.S. federal government shutdown, broader economic uncertainty, and the Trump administration's unpredictable trade policy. 

Increasingly investors are preferring gold as a reserve asset over the U.S. dollar denominated-assets, including the U.S. Treasury bonds.

Moreover, consumers are worried about the resurgent food price inflation, and the Trump administration's heavy-handed approach in handling farm labor is pushing thousands of farmers on the brink of collapse.

The U.S. president offered his support for bailing out wheat, soybean, and corn farmers who export most of their crops to China; however, the world's second-largest economy has stopped purchasing U.S. agricultural goods in retaliation to Trump's goods tariffs. 

The U.S. government has subsidized farmers in the past, which in effect ends up supporting farmers who put food on the table of Chinese customers. 

U.S. Stock Movers 

Joby Aviation dropped 10.6% to $16.89, and the aviation company priced its secondary offering at a discount.

The vertical landing and takeoff company sold 30.5 million shares at $16.85 per share. The latest secondary offering raised around $514 million.  

Fair Isaac Corp. decreased 3.7% to $1,810.0, and the company trimmed the previous session's 20% surge after the credit score company announced a new pricing structure. 

The credit score company announced its plans to license its FICO scores to mortgage resellers, bypassing credit reporting bureaus, who can provide direct access to loan seekers. 

Equifax edged up 2.3% to $244.0 and rebounded from a 10% drop in the previous week. 

Gold Surged to Record High as Shutdown Entered Second Week

Stocks in New York attempted to rebound after a week of lackluster trading amid growing worries about the stretched valuation of tech stocks. 

The S&P 500 index inched up 0.1%, the tech-heavy Nasdaq Composite edged up 0.3%, and the yield on 10-year U.S. Treasury notes edged lower to 4.103%.

Gold surged 1.3% to $4,031 an ounce, and the price of the yellow metal crossed $4,000 for the first time as investors sought a safe haven asset. 

Investor anxieties are high amid mounting concerns about the U.S. federal government shutdown, broader economic uncertainty, and the Trump administration's unpredictable trade policy. 

Moreover, consumers are worried about the resurgent food price inflation, and the Trump administration's heavy-handed approach in handling farm labor is pushing thousands of farmers on the brink of collapse.

The U.S. president offered his support for bailing out wheat, soybean, and corn farmers who export most of their crops to China; however, the world's second-largest economy has stopped purchasing U.S. agricultural goods in retaliation to Trump's goods tariffs. 

The U.S. government has subsidized farmers in the past, which in effect ends up supporting farmers who put food on the table of Chinese customers. 

U.S. Stock Movers 

Joby Aviation dropped 10.6% to $16.89, and the aviation company priced its secondary offering at a discount.

The vertical landing and takeoff company sold 30.5 million shares at $16.85 per share. The latest secondary offering raised around $514 million.  

Fair Isaac Corp. decreased 3.7% to $1,810.0, and the company trimmed the previous session's 20% surge after the credit score company announced a new pricing structure. 

The credit score company announced its plans to license its FICO scores to mortgage resellers, bypassing credit reporting bureaus, who can provide direct access to loan seekers. 

Equifax edged up 2.3% to $244.0 and rebounded from a 10% drop in the previous week. 

India WED

Stock market indexes in Mumbai eased, and investors awaited the start of earnings season. 

The Sensex index decreased 0.2%, the Nifty 50 index dropped 0.3%, and the rupee held at a record low of 88.77 against the U.S. dollar. 

Gold prices touched a new record high in New York, London, and Mumbai amid worries of elevated geopolitical tensions and the U.S. debt level.  

In Mumbai, the price of 24-carat gold touched ₹12,317 per gram, and the silver price advanced to ₹157 per gram. 

Precious metal prices are likely to continue to scale new record highs as central banks in Asia, the Middle East, and the European Union replace their U.S. Treasury holdings with gold. 

India Indexes and Stocks 

The Sensex decreased 0.2% to 81,747.85, and the Nifty dropped 0.3% to 25,038.30. 

KPIT decreased 1% to ₹1,158.50, and the information services company increased its stake in N-Dream by an additional 62.9%. 

Tata Motors Ltd. dropped 1.1% to ₹690.40, and the company's JLR division's sales decreased 24.2% from a year ago in the September quarter.

Container Corporation of India decreased 0.2% to ₹531.60, and the company signed a strategic agreement with Ultra Cement to improve cement transport through the rail network.  

Titan Company rose 4.1% to ₹3,560.10, and the specialty retailer reported an 18% increase in sales in the fiscal second quarter.  

Japan's Real Wage Growth Retains Downward Trend In August

Japan's indexes lacked direction, and investors reviewed the latest wage data and business confidence index. 

The Nikkei 225 Stock Average decreased 0.2%, and the Topix advanced 0.4%. 

Japan's real wages in August decreased for the eighth consecutive month, as inflation outpaced wage growth. 

Japan's nominal wage increase slowed to an annual 1.5% in August from 3.4% in the previous month, the Ministry of Health, Labour and Welfare said.  

The nominal wages, which include base and overtime pay, increased annually by 1.5% to 300,517 yen, or $2,000, and rose for the 44th consecutive month. 

After adjusting for consumer price inflation of 3.1%, real wages declined 1.4%, and the ministry said the future trend in real wages is likely to be driven by inflation's trajectory.  

Business Confidence Declined in October

The Reuters Tankan index for Japanese manufacturers declined to +8 in October from a three-year high of +13 in September, highlighting the first fall in four months as firms tackled U.S. tariffs and rising operating costs.  

The index measuring confidence is likely to continue to ease and drop to +4 in January.  

Of the nine manufacturing sectors surveyed, five reported a decrease in confidence. 

The auto and transport machinery sector indicated the sharpest decrease, with the sector's index dropping to +9 from +33. 

The vehicle and transportation industry, which accounts for one-third of the U.S. exports and employs about 8% of the workforce in Japan, dominates Japan's exports. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average decreased 0.2% to 47,834.65, and the Topix rose 0.4% to 3,241.81. 

The Japanese yen weakened to 152, and extended this week's decrease to 3% after Sanei Takaichi was elected as the LDP's leader. 

Tokyo Electron decreased 2.9% to ¥29,225.0, Advantest Corp. declined 0.3% to ¥17,960.0, and Disco Corp. eased 1.7% to ¥52,310.0. 

Seven & I Holdings Co. Ltd rose 0.4% to ¥1,975.50, Fast Retailing rose 0.01% to ¥47,100.0, and Aeon Holding advanced 1.1% to ¥1,826.0.

Japan's Real Wage Growth Retains Downward Trend In August

Japan's indexes lacked direction, and investors reviewed the latest wage data and business confidence index. 

The Nikkei 225 Stock Average decreased 0.2%, and the Topix advanced 0.4%. 

Japan's real wages in August decreased for the eighth consecutive month, as inflation outpaced wage growth. 

Japan's nominal wage increase slowed to an annual 1.5% in August from 3.4% in the previous month, the Ministry of Health, Labour and Welfare said.  

The nominal wages, which include base and overtime pay, increased annually by 1.5% to 300,517 yen, or $2,000, and rose for the 44th consecutive month. 

After adjusting for consumer price inflation of 3.1%, real wages declined 1.4%, and the ministry said the future trend in real wages is likely to be driven by inflation's trajectory.  

Business Confidence Declined in October

The Reuters Tankan index for Japanese manufacturers declined to +8 in October from a three-year high of +13 in September, highlighting the first fall in four months as firms tackled U.S. tariffs and rising operating costs.  

The index measuring confidence is likely to continue to ease and drop to +4 in January.  

Of the nine manufacturing sectors surveyed, five reported a decrease in confidence. 

The auto and transport machinery sector indicated the sharpest decrease, with the sector's index dropping to +9 from +33. 

The vehicle and transportation industry, which accounts for one-third of the U.S. exports and employs about 8% of the workforce in Japan, dominates Japan's exports. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average decreased 0.2% to 47,834.65, and the Topix rose 0.4% to 3,241.81. 

Tokyo Electron decreased 2.9% to ¥29,225.0, Advantest Corp. declined 0.3% to ¥17,960.0, and Disco Corp. eased 1.7% to ¥52,310.0. 

Seven & I Holdings Co. Ltd rose 0.4% to ¥1,975.50, Fast Retailing rose 0.01% to ¥47,100.0, and Aeon Holding advanced 1.1% to ¥1,826.0.

Hong Kong Indexes Dropped Amid Valuation Worries and Unresolved Trade Tensions

Stocks in Hong Kong traded down amid worries about the stretched valuation of tech stocks and potential bubble formation. 

The Hang Seng Index decreased 1%, the Hang Seng Tech Index declined 1.4%, and investors sold artificial intelligence-linked stocks. 

Financial markets in mainland China are scheduled to reopen on Thursday after a weeklong public holiday. 

Markets were under pressure, and tech stocks reflected overnight trading in New York, as investors worried that AI trade has become more circular. 

In addition, the U.S. federal government shutdown entered its second week, and lawmakers remained far apart in bridging their differences and in finalizing a short-term budget. 

Moreover, non-fiat assets continued to advance due to political uncertainties in the U.S., the European Union, and Japan. 

Gold jumped 0.8% to $4,018 an ounce amid sustained global buying as central banks lighten their holdings of the U.S. Treasury notes.

Hong Kong Indexes and Stock Movers 

The Hang Seng Index fell by 1% to 26,673.57, while the Hang Seng Tech Index dropped by 1.4%. 

Alibaba Group Holding decreased 2.9% to HK$175.20, Tencent Holdings declined 2.4% to HK$674.50, and Meituan dropped 2.6% to HK$102.90. 

BYD edged up 1.8% to HK110.0, Li Auto decreased 1.3% to HK$95.05, and Xpeng Inc. added 1.8% to HK$92.30. 

Hong Kong Indexes Dropped Amid Valuation Worries and Unresolved Trade Tensions

Stocks in Hong Kong traded down amid worries about the stretched valuation of tech stocks and potential bubble formation. 

The Hang Seng Index decreased 1%, the Hang Seng Tech Index declined 1.4%, and investors sold artificial intelligence-linked stocks. 

Financial markets in mainland China are scheduled to reopen on Thursday after a weeklong public holiday. 

Markets were under pressure, and tech stocks reflected overnight trading in New York, as investors worried that AI trade has become more circular. 

In addition, the U.S. federal government shutdown entered its second week, and lawmakers remained far apart in bridging their differences and in finalizing a short-term budget. 

Moreover, non-fiat assets continued to advance due to political uncertainties in the U.S., the European Union, and Japan. 

Gold jumped 0.8% to $4,018 an ounce amid sustained global buying as central banks lighten their holdings of the U.S. Treasury notes.

Hong Kong Indexes and Stock Movers 

The Hang Seng Index fell by 1% to 26,673.57, while the Hang Seng Tech Index dropped by 1.4%. 

Alibaba Group Holding decreased 2.9% to HK$175.20, Tencent Holdings declined 2.4% to HK$674.50, and Meituan dropped 2.6% to HK$102.90. 

BYD edged up 1.8% to HK110.0, Li Auto decreased 1.3% to HK$95.05, and Xpeng Inc. added 1.8% to HK$92.30. 

Corporate Deal Making Booms, Indexes Scale New Record Highs, Shutdown Approaches Second Week

Popular indexes on Wall Street flatlined after scaling new highs this week and extending a nine-month rally.

The S&P 500 index decreased 0.1%, and the tech-heavy Nasdaq Composite declined 0.2% amid growing worries about stretched valuation. 

The yield on 10-year U.S. Treasury notes increased to 4.17%, and the U.S. dollar index inched higher 0.3% to 98.44. 

The S&P 500 index notched up its 32nd new record high, and the Nasdaq touched its 31st new record high as of the close of Monday as investors overlooked the ongoing government shutdown. 

The shutdown has delayed the release of payroll data, international trade statistics, and a budget statement. 

Despite the statistical data blackout, investors are holding out for at least two more rate cuts this year. 

The S&P 500 index and the Nasdaq Composite are hovering in record territory, driven by AI-linked circular trade as the leading tech companies plow billions of dollars into data centers and advanced chips. 

On the earnings front, investors are awaiting results from Pepsi and Delta Air Lines, and major banks are scheduled to release their quarterly results next week. 

U.S. Stock Movers 

Trilogy Metals Inc. soared 224% to $6.79 after the U.S. government acquired a 10% stake in the mineral explorer in Alaska for $35.6 million. 

"The Company has a 50% interest in the 190,929-hectare Upper Kobuk Mineral Projects, which hosts numerous areas containing high-grade volcanogenic massive sulfide and carbonate replacement-style polymetallic zones of mineralization," according to the company's website. 

Constellation Brands rose 2.5% to $143.60, and the company's quarterly results surpassed market expectations. 

The distributor of beer, wine, and spirits retained its lowered annual outlook, citing macroeconomic headwinds. 

AEHR Test Systems dropped 21% to $24.84, and the company that tests semiconductor equipment reported adjusted earnings per share of 1 cent on revenue of $11 million in its latest quarter. 

The company also refused to reinstate its annual outlook, citing ongoing tariff-related uncertainty. 

Intercontinental Exchange Inc. jumped 3.2% to $164.03 after the company took a $2 billion stake in the prediction markets platform operator Polymarket. 

The latest investment values the consumer-focused company at $8 billion.  

Corporate Deal Making Booms, Indexes Scale New ReHighs, Shutdown Approaches Second Week

Popular indexes on Wall Street flatlined after scaling new highs this week and extending a nine-month rally.

The S&P 500 index decreased 0.1%, and the tech-heavy Nasdaq Composite declined 0.2% amid growing worries about stretched valuation. 

The yield on 10-year U.S. Treasury notes increased to 4.17%, and the U.S. dollar index inched higher 0.3% to 98.44. 

The S&P 500 index notched up its 32nd new record high, and the Nasdaq touched its 31st new record high as of the close of Monday as investors overlooked the ongoing government shutdown. 

The shutdown has delayed the release of payroll data, international trade statistics, and a budget statement. 

Despite the statistical data blackout, investors are holding out for at least two more rate cuts this year. 

The S&P 500 index and the Nasdaq Composite are hovering in record territory, driven by AI-linked circular trade as the leading tech companies plow billions of dollars into data centers and advanced chips. 

On the earnings front, investors are awaiting results from Pepsi and Delta Air Lines, and major banks are scheduled to release their quarterly results next week. 

U.S. Stock Movers 

Trilogy Metals Inc. soared 224% to $6.79 after the U.S. government acquired a 10% stake in the mineral explorer in Alaska for $35.6 million. 

"The Company has a 50% interest in the 190,929-hectare Upper Kobuk Mineral Projects, which hosts numerous areas containing high-grade volcanogenic massive sulfide and carbonate replacement-style polymetallic zones of mineralization," according to the company's website. 

Constellation Brands rose 2.5% to $143.60, and the company's quarterly results surpassed market expectations. 

The distributor of beer, wine, and spirits retained its lowered annual outlook, citing macroeconomic headwinds. 

AEHR Test Systems dropped 21% to $24.84, and the company that tests semiconductor equipment reported adjusted earnings per share of 1 cent on revenue of $11 million in its latest quarter. 

The company also refused to reinstate its annual outlook, citing ongoing tariff-related uncertainty. 

Intercontinental Exchange Inc. jumped 3.2% to $164.03 after the company took a $2 billion stake in the prediction markets platform operator Polymarket. 

The latest investment values the consumer-focused company at $8 billion.  

Japan's Household Spending Advanced Fourth Consecutive Month In August

Stock market indexes in Tokyo traded at new record highs amid optimism about a fiscal policy shift and the continuation of ultra-loose monetary policy. 

The Nikkei 225 Stock Average increased 0.7%, the broader Topix increased 0.3%, and the yen hovered near a recent low of 150.43 against the U.S. dollar. 

The newly elected LDP leader, Sanei Takaichi, is expected to urge the Bank of Japan to maintain its ultra-loose monetary stance, driving the yen down 2% in two days. 

Japan's Household Spending and Income Advanced In August

Japan's household income and spending adjusted for inflation increased in August, according to a monthly report released by the Ministry of Internal Affairs and Communication. 

Spending by households of two or more rose by a real 2.3% from a year ago to 313,977 yen, or $2,100, in August, and increased for the fourth consecutive month. 

Spending on transportation and communications increased 13.5%, culture and recreation rose 12.2%, energy and water advanced 4.7%, and food decreased 1.2%. 

Spending on food accounts for 30% of total household spending, and food spending headed lower partly because people stepped up emergency food stockpiling a year ago due to an earthquake advisory. 

Household income fortwo or more salaried individuals, adjusted for inflation, increased 2.8% from a year ago to 608,578 yen, according to the ministry.  

Japan Indexes and Stocks  

The Nikkei 225 Stock Average rose 0.7% to 48,264.98, and the broader Topix edged up 0.3% to 3,235.13.  

Technology stocks continued to advance after OpenAI struck a supply deal for advanced chips with AMD and acquired an option to take up to a 10% stake in the chipmaker.

Tokyo Electron rose 0.2% to ¥30,640.0, Advantest Corp. gained 2.7% to ¥18,375.0, and Disco Corp. decreased 1.4% to ¥53,180.0. 

Japan's Household Spending Advanced Fourth Consecutive Month

Stock market indexes in Tokyo traded at new record highs amid optimism about a fiscal policy shift and the continuation of ultra-loose monetary policy. 

The Nikkei 225 Stock Average increased 0.7%, the broader Topix increased 0.3%, and the yen hovered near a recent low of 150.43 against the U.S. dollar. 

The newly elected LDP leader, Sanei Takaichi, is expected to urge the Bank of Japan to maintain its ultra-loose monetary stance, driving the yen down 2% in two days. 

Japan's Household Spending and Income Advanced In August

Japan's household income and spending adjusted for inflation increased in August, according to a monthly report released by the Ministry of Internal Affairs and Communication. 

Spending by households of two or more rose by a real 2.3% from a year ago to 313,977 yen, or $2,100, in August, and increased for the fourth consecutive month. 

Spending on transportation and communications increased 13.5%, culture and recreation rose 12.2%, energy and water advanced 4.7%, and food decreased 1.2%. 

Spending on food accounts for 30% of total household spending, and food spending headed lower partly because people stepped up emergency food stockpiling a year ago due to an earthquake advisory. 

Household income fortwo or more salaried individuals, adjusted for inflation, increased 2.8% from a year ago to 608,578 yen, according to the ministry.  

Japan Indexes and Stocks  

The Nikkei 225 Stock Average rose 0.7% to 48,264.98, and the broader Topix edged up 0.3% to 3,235.13.  

Technology stocks continued to advance after OpenAI struck a supply deal for advanced chips with AMD and acquired an option to take up to a 10% stake in the chipmaker.

Tokyo Electron rose 0.2% to ¥30,640.0, Advantest Corp. gained 2.7% to ¥18,375.0, and Disco Corp. decreased 1.4% to ¥53,180.0. 

U.S. Indexes Attempt to Extend Winning Streak to Fifth Consecutive Week, AMD In Focus

U.S. stock market indexes overlooked the continued federal government shutdown, and investors shifted their focus on the upcoming earnings season. 

The S&P 500 index edged up 0.3%, and the tech-heavy Nasdaq Composite advanced 0.5% as political stalemate dampened risk appetite. 

Lawmakers of both parties stuck to their positions, and the political impasse shows few signs of unlocking.

In addition, the lack of fresh macroeconomic data released by the government agencies complicated the outlook for monetary policy.  

The shutdown has delayed the release of September payroll data, leaving investors with less visibility of the inner workings of the U.S. economy.  

The economic data blackout is likely to continue this week as lawmakers of both parties struggle to strike a compromise and end the federal government shutdown. 

Later in the week, we plan to release the international trade data, weekly jobless claims, and the federal budget statement. 

France's benchmark indexes dropped 1.5% after Prime Minister Sebastien Lecornu tendered his resignation after 27 days on Monday, plunging the country into a deeper political crisis. 

Gravity-Defying Global Markets Rally Continued Unabated

Last week, stock market indexes on both sides of the Atlantic continued to defy gravity and scale new record highs amid an AI-powered global rally. 

Despite the ongoing macroeconomic headwinds and U.S. policy missteps, the narrow market rally pushed indexes to new record highs amid AI enthusiasm and earnings optimism. 

European markets flirted with new record highs, largely because of international fund flows and optimism about the defense spending. Investors overlooked growing political instability in France and worries about elevated debt levels in France and the UK. 

Markets in China struggled to hold on to recent gains as investors questioned the durability of the liquidity-driven rally amid intense competition in several key industries, including manufacturers of electric vehicles, renewable energy products, and industrial robots.

U.S. Stock Movers 

Advanced Micro Devices gained 26% to $208.39, and OpenAI signed a supply deal with the chipmaker and could take a 10% stake in the company. 

Fifth Third Bancorp decreased 2.4% to $43.38, and the regional bank agreed to acquire its rival Comerica Inc. for $10.9 billion in an all-stock transaction. 

Comercia jumped 12% to $79.30. 

U.S. Indexes Attempt to Extend Winning Streak to Fifth Consecutive Week, AMD In Focus

U.S. stock market indexes overlooked the continued federal government shutdown, and investors shifted their focus on the upcoming earnings season. 

The S&P 500 index edged up 0.3%, and the tech-heavy Nasdaq Composite advanced 0.5% as political stalemate dampened risk appetite. 

Lawmakers of both parties stuck to their positions, and the political impasse shows few signs of unlocking.

In addition, the lack of fresh macroeconomic data released by the government agencies complicated the outlook for monetary policy.  

The shutdown has delayed the release of September payroll data, leaving investors with less visibility of the inner workings of the U.S. economy.  

The economic data blackout is likely to continue this week as lawmakers of both parties struggle to strike a compromise and end the federal government shutdown. 

Later in the week, we plan to release the international trade data, weekly jobless claims, and the federal budget statement. 

France's benchmark indexes dropped 1.5% after Prime Minister Sebastien Lecornu tendered his resignation after 27 days on Monday, plunging the country into a deeper political crisis. 

Gravity-Defying Global Markets Rally Continued Unabated

Last week, stock market indexes on both sides of the Atlantic continued to defy gravity and scale new record highs amid an AI-powered global rally. 

Despite the ongoing macroeconomic headwinds and U.S. policy missteps, the narrow market rally pushed indexes to new record highs amid AI enthusiasm and earnings optimism. 

European markets flirted with new record highs, largely because of international fund flows and optimism about the defense spending. Investors overlooked growing political instability in France and worries about elevated debt levels in France and the UK. 

Markets in China struggled to hold on to recent gains as investors questioned the durability of the liquidity-driven rally amid intense competition in several key industries, including manufacturers of electric vehicles, renewable energy products, and industrial robots.

U.S. Stock Movers 

Advanced Micro Devices gained 26% to $208.39, and OpenAI signed a supply deal with the chipmaker and could take a 10% stake in the company. 

Fifth Third Bancorp decreased 2.4% to $43.38, and the regional bank agreed to acquire its rival Comerica Inc. for $10.9 billion in an all-stock transaction. 

Comercia jumped 12% to $79.30.