Pls use this Quick Take Asia 1142x160 Pls use this Quick Take Asia 1142x160 Pls use this Quick Take Asia 1142x160

Global Market Quick Take: Asia – October 6, 2023

Macro 4 minutes to read
Saxo Be Invested
APAC Research

Summary:  The S&P 500 ended slightly lower at 4,258, while calm returned to the Treasury market and crude oil prices continued to decline. Brent crude dropped below $85 per barrel, its lowest since August. The focus shifted to the US employment report and the upcoming earnings season. The 5-30-year yield curve steepened, suggesting that the recent long-end Treasury sell-off is driven by increased demand for term premiums rather than intensification of the expectation of “higher for longer” Fed policy. The US dollar weakened as Treasury yields stabilised ahead of the US jobs report, with non-farm payrolls expected at 170k compared to the previous 187k.

The Saxo Quick Take is a short, distilled opinion on financial markets with references to key news and events. 

Market Data 2023-10-06

US Equities: The S&P 500 hovered above its 200-day moving average, ending the session 0.1% lower at 4,258. The Nasdaq 100 slid 0.4% to 14,723. The return of calm in the Treasury market and the continuous decline in crude oil prices helped. Meanwhile, the focus is on today's employment report and the start of the earnings reporting season next week.

Fixed income: Calm returned to the Treasury market, with the 10-year yield trading in its narrowest range in more than two weeks to finish the session 1bp lower at s4.72%. There was mixed performance across the curve, with the 5-year yield dropping the most by 4bps, and the 30-year yield rising the most by 3bps, bringing the 5-30-year yield curve steepened by 7bps to 20bps. The steepening of the 5-30-year part of the curve lends credence to the notion that the sell-off in the long end of the Treasury curve is more related to an increase in the demand for term premium rather than any rise in expectations of a "higher for longer" Fed policy, which should hit the 5-year segment more. For today, the focus is on the employment report.

China/HK Equities: The Hang Seng Index pared nearly all the gains from the morning session rally to finish 0.1% higher at 17,214. Sunac received approval from a court in Hong Kong for its debt restructuring plan, becoming the first major Chinese developer to secure court approval. This news lifted the share prices of other Chinese developers. Beer stocks had a notable performance due to headlines about beer consumption in the mainland during the Golden Week.

FX: Broad-based weakness in the US dollar as Treasury yields retreated further in the wait for US jobs report due today. NZD was the top performer, with NZDUSD heading above the 50DMA to 0.5970. AUDUSD also pushed higher, but unable to break above 0.6360 for now. Oil price declines put pressure on CAD and NOK, sending NZDCAD and NZDNOK surging as noted in yesterday’s FX note. EURUSD attempting a push above 1.0550 while USDJPY stays near 148.40.

Commodities: Oil prices extended their decline with Brent also below $85/barrel now and the lowest since end-August. There were no fresh catalysts for the move, expect demand concerns starting to be a big focus going into Q4. Gold is finding some stability in the $1820-area and US jobs report and its reaction on bond yields could be key. Wheat futures extended gains from last week’s low with export demand underpinning.

Macro: Fed’s Daly (2024 voter) showed increasing confidence in the lack of need for further hikes, citing the recent backup higher in yields (tightening financial conditions) removing the need to do more on hikes. Initial jobless claims data rose marginally to 207k from 205k in the week ending September 30th, beneath the expectations of 210k. Focus now shifts to September NFP report due today.

Macro events: US Jobs Report (Sep) exp 170k vs. 187k prior – read full preview here; Canadian Jobs Report (Sep) exp 20k vs. 39.9k prior

In the news:

  • UK to examine Amazon and Microsoft's cloud dominance (Reuters)
  • GM Has at Least 20 Million Vehicles With Potentially Dangerous Air-Bag Parts (WSJ)
  • Levi Strauss cuts annual forecasts as promotions, wholesale weakness weigh (Reuters)
  • Trump Considers Meeting With Republicans on House Speaker Vote (Bloomberg)
  • JPMorgan steps up securitisation effort ahead of new US capital rules (FT)


For all macro, earnings, and dividend events check Saxo’s calendar.

For a global look at markets – go to Inspiration.


Quarterly Outlook 2024 Q3

Sandcastle economics

01 / 05

  • 350x200 peter

    Macro: Sandcastle economics

    Invest wisely in Q3 2024: Discover SaxoStrats' insights on navigating a stable yet fragile global economy.

    Read article
  • 350x200 althea

    Bonds: What to do until inflation stabilises

    Discover strategies for managing bonds as US and European yields remain rangebound due to uncertain inflation and evolving monetary policies.

    Read article
  • 350x200 peter

    Equities: Are we blowing bubbles again

    Explore key trends and opportunities in European equities and electrification theme as market dynamics echo 2021's rally.

    Read article
  • 350x200 charu (1)

    FX: Risk-on currencies to surge against havens

    Explore the outlook for USD, AUD, NZD, and EM carry trades as risk-on currencies are set to outperform in Q3 2024.

    Read article
  • 350x200 ole

    Commodities: Energy and grains in focus as metals pause

    Energy and grains to shine as metals pause. Discover key trends and market drivers for commodities in Q3 2024.

    Read article


The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (
Full disclaimer (
Full disclaimer (

Saxo Bank A/S (Headquarters)
Philip Heymans Alle 15

Contact Saxo

Select region


Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

This website can be accessed worldwide however the information on the website is related to Saxo Bank A/S and is not specific to any entity of Saxo Bank Group. All clients will directly engage with Saxo Bank A/S and all client agreements will be entered into with Saxo Bank A/S and thus governed by Danish Law.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.