• Wall Street ended in negative territory on October 1, with the DJIA, S&P 500, and Nasdaq closed down by -0.41%, -0.93%, and -1.53%, respectively.
• Stocks fell moderately on Tuesday, with the S&P 500 hitting 1-week lows. Heightened Middle East tensions, with Israel's ground assault into Lebanon and Iran's missile attack, pressured equities. US economic data was mixed, as job openings exceeded expectations, while the ISM manufacturing index for September underperformed.
• The 10-yr UST yield fell by -7.0 bps to 3.74%, and the 2-yr yield dropped by -5.0 bps to 3.61%. This decline was driven by easing price pressures, as the ISM prices paid sub-index reached a 9-month low of 48.3. Additionally, escalating tensions in the ME bolstered demand for safe-haven assets like T-notes.
• The US ISM Manufacturing PMI stayed at 47.2 in September, missing expectations of a rise to 47.5, while the prices paid sub-index fell to 48.3, a 9-month low and below forecasts of 53.5.
• The total job openings in the US climbed to 8.040 million in August 2024, marking a rise of 329,000 from 7.711 million in July, and beating market forecasts of 7.655 million.
• The Eurozone annual inflation fell to 1.8% in September 2024, the lowest since April 2021, down from 2.2% in August and below the ECB's target of 2%. In addition, core inflation also softened, falling from 2.8% to 2.7%.
• Global bond yields moved lower on Tuesday, with the 10-yr German bund yield slipped by -8.0 bps to 2.03%, the 10-yr UK gilt yield lowered by -6.2 bps to 3.94%, while the 10-yr Japanese JGB edged down by -0.5 bps to 0.86%.
