Global Market Quick Take: Asia – October 6, 2023 Global Market Quick Take: Asia – October 6, 2023 Global Market Quick Take: Asia – October 6, 2023

Global Market Quick Take: Asia – October 6, 2023

Macro 4 minutes to read
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. 

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 / 07

  • Macro: Sandcastle economics

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

    Read article
  • 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
  • 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
  • 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
  • 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 rise of populism: Far-right parties will influence the future

    The disheartening cycle of unresolved geopolitical conflicts, the rise of polarizing political parties, and the stagnation of productivity.

    Read article
  • Investing in China: Navigating Q1 amid economic challenges

    Understand China's political landscape in Q4 2023 and the impact on counter-cyclical initiatives, with a focus on the pivotal Q1 2024.

    Read article

The Saxo 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 is not intended to and does not change or expand on this. 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 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 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 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 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 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 (

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. Saxo does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo or its affiliates.

Saxo Capital Markets HK Limited
19th Floor
Shanghai Commercial Bank Tower
12 Queen’s Road Central
Hong Kong

Contact Saxo

Select region

Hong Kong S.A.R
Hong Kong S.A.R

Saxo Capital Markets HK Limited (“Saxo”) is a company authorised and regulated by the Securities and Futures Commission of Hong Kong. Saxo holds a Type 1 Regulated Activity (Dealing in Securities); Type 2 Regulated Activity (Dealing in Futures Contract); Type 3 Regulated Activity (Leveraged Foreign Exchange Trading); Type 4 Regulated Activity (Advising on Securities) and Type 9 Regulated Activity (Asset Management) licenses (CE No. AVD061). Registered address: 19th Floor, Shanghai Commercial Bank Tower, 12 Queen’s Road Central, Hong Kong.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Trading in leveraged products may result in your losses exceeding your initial deposits. Saxo does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo does not take into account an individual’s needs, objectives or financial situation. Please click here to view the relevant risk disclosure statements.

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit

The information or the products and services referred to on this site may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and services offered on this website are not directed at, or intended for distribution to or use by, any person or entity residing in the United States and Japan. Please click here to view our full disclaimer.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc. Android is a trademark of Google Inc.