General Market News

Steady Energy, a Finnish nuclear technology company developing small modular reactors for district heating, debuted on Nasdaq with shares falling in its market debut. The company raised €5 million through its oversubscribed IPO amid growing European interest in nuclear energy driven by data center expansion and demand for low-carbon heating alternatives.

• Steady Energy was founded in 2023 as a spin-off from VTT Technical Research Centre of Finland and develops LDR-50 reactors designed to replace combustion-based heating in municipalities with over 50,000 citizens
• Four Finnish cities are currently considering the use of Steady Energy's LDR-50 reactors for district heating systems
• The listing reflects increased nuclear energy interest in Europe as the region prepares for higher power demand from cloud computing and data centers while seeking low-carbon alternatives to fossil-fuel heating

The Trump administration is urging European countries to immediately release diesel reserves as U.S. diesel prices hit a record $6.50 per gallon amid supply disruptions from the Iran war and Strait of Hormuz tensions. The U.S. is reconsidering a potential diesel export ban that could severely impact Europe, which relies on the U.S. for about half of its diesel imports. EU member states are holding crisis talks to address soaring prices and coordinate a response.

• U.S. diesel prices reached a record $6.50 per gallon in late month, driven by supply disruptions from Iran conflict and Strait of Hormuz issues, creating political pressure ahead of midterm elections
• The U.S. supplied approximately 50% of EU diesel imports in August, making Europe highly vulnerable to any potential U.S. export ban
• Trump appears to be cooling on a diesel export ban after acknowledging it could have 'negative impact' on gasoline prices and as oil flows through Strait of Hormuz begin to recover

Liquefied natural gas shipments through the Strait of Hormuz reached their highest level in September since the US-Iran war began in February, with 19-21 cargoes transiting the strategic waterway according to analytics firms. The increase, primarily from Qatar and UAE, comes despite ongoing security concerns and vessels conducting 'dark transits' by switching off tracking transponders. Analysts question whether these elevated export levels can be sustained through winter amid escalation risks.

• September saw 19-21 LNG cargoes exit Hormuz (13 from Qatar, 6-8 from UAE), up from 15 in June when the US-Iran war began, representing a recovery to approximately 25% of pre-war transit levels
• Multiple QatarEnergy vessels conducted 'dark transits' by switching off AIS transponders while passing through the strait, reappearing days later off India's west coast to avoid detection
• Key winter uncertainty centers on whether Iran will escalate militarily if higher exports are seen as diminishing its leverage over the strait, which carried one-fifth of global crude oil and LNG supplies before the war

U.S. Treasury yields edged slightly higher on Friday following a week of global bond selloff, with the 30-year yield reaching a 24-year high. Investors awaited September's jobs report, expected to show 84,000 jobs added and 4.1% unemployment, which will influence Federal Reserve rate decisions.

• The 30-year Treasury yield hit 5.618%, its highest level in 24 years, while the 10-year yield reached 5.243% after climbing to multiyear highs
• Rising yields reflect concerns about persistent inflation and hawkish central bank commentary, fueling expectations that interest rates will remain elevated longer
• Traders are pricing in a 72% probability that the Fed will keep rates unchanged at its October meeting, depending on jobs data showing continued economic resilience

Cryptocurrency exchange Bitget has frozen approximately $1.1 million of the nearly $388 million stolen in a sophisticated cyberattack last week, with CEO Gracy Chen stating the company is 'not expecting to recover a lot' of the stolen funds. The exchange replenished its Protection Fund to $300 million using its own reserves to cover losses, ensuring user account balances remained unaffected. Attackers exploited zero-day vulnerabilities in two third-party security products to gain privileged access without stealing private keys.

• Bitget's Protection Fund was drawn down from over $464 million to below $200 million after the hack, then restored to $300 million using the company's own capital rather than customer funds
• Investigation by Mandiant and SlowMist found attackers used a zero-day vulnerability dating to August 31 to compromise third-party security products and bypass normal withdrawal processes
• Withdrawals for bitcoin, ether, and USDT have resumed, with remaining cryptocurrencies, fiat, and peer-to-peer services expected to resume Friday; the exchange maintains a 131% overall reserve ratio

U.S. Trade Representative Jamieson Greer stated that a trade deal with India is not 'imminent' despite ongoing negotiations and a recent phone call between President Trump and Prime Minister Modi. The discussions remain stalled over key issues including India's purchases of Russian oil and agricultural sector protections. Washington currently has 18% tariffs on Indian goods, with threats of up to 100% tariffs if India continues buying Russian oil.

• India's continued purchase of Russian oil remains a critical sticking point, with the U.S. threatening tariffs up to 100% while India faces supply constraints due to the Iran war
• India seeks to protect its politically sensitive agricultural sector and maintain preferential tariffs that give it competitive advantages over peers in the U.S. market
• Indian Commerce Minister Goyal appeared more optimistic about reaching an 'early conclusion' of a mutually beneficial interim agreement, highlighting different perspectives on negotiation progress

The U.S. Securities and Exchange Commission proposed new rules to make it easier for investment advisers and regulated funds to hold cryptocurrencies on behalf of clients. The framework would allow self-custody in certain circumstances and permit state trust companies to serve as crypto custodians, modernizing decades-old custody requirements that have limited advisers' ability to offer crypto investments.

• The proposal establishes a tailored custody framework for registered investment advisers, investment companies, and business development companies to hold crypto assets
• The regulatory push follows the stalling of the Clarity Act, a sweeping crypto market structure bill, in the Senate, prompting regulators to build rules under existing authority
• The changes come as Bitcoin and crypto markets show renewed momentum after a volatile period from late 2025 into the first half of 2026

Goldman Sachs warns that Latin America faces the greatest regional exposure to a potential U.S. diesel export ban being considered by the Trump administration to address high energy prices. Four Latin American countries rely on U.S. imports for over 50% of their diesel consumption, potentially impacting GDP by around 1% if supply is suddenly cut off.

• Ecuador, Chile, Mexico, and Peru each import more than 50% of their diesel consumption from the United States, making them highly vulnerable to export restrictions
• A U.S. diesel export ban would reduce American retail diesel prices by $0.25 per gallon per week of bans, creating only a 2-3 basis point drag on U.S. headline inflation after one month
• Each sustained 10% increase in diesel prices would raise global headline inflation by 0.1 percentage point, with larger effects in Emerging Market Asia and Europe

Europe faces a potential natural gas shortage this winter as storage levels hit five-year lows following record summer heat that depleted reserves. The continent remains heavily dependent on U.S. liquefied natural gas exports and, surprisingly, continued Russian gas imports despite efforts to cut ties. European natural gas prices have more than doubled for October futures compared to February, raising concerns about winter heating costs.

• European Union natural gas storage is at its lowest point in five years after record summer heat increased cooling demand, with Germany and France in particularly weak positions
• U.S. LNG exporters Cheniere Energy (LNG) and Cheniere Energy Partners (CQP) are positioned to benefit, while analysts at HSBC upgraded BP and TotalEnergies to 'buy' on expectations of higher gas prices (34% increase forecast for 2024, 40% for 2025)
• Europe still purchases billions in Russian LNG via ships despite pledges to end contracts, and October natural gas futures prices are more than double February levels on the TTF exchange

Federal Reserve Governor Lisa Cook identified AI infrastructure buildout as a top inflationary risk for 2027, noting that supply shocks are having more persistent effects on prices than historically expected. The Fed raised rates by a quarter point last month as inflation remains at 3.4%, well above the 2% target for over 5.5 years.

• Cook stated that 'AI build out is potentially creating inflationary pressures that may not resolve very quickly,' marking it as a main concern for 2027
• Inflation by the Fed's targeted measure stood at 3.4% in August, remaining above the 2% goal for more than 5.5 years
• The Fed is reconsidering its traditional approach of 'looking through' supply shocks, as geopolitical risks and sector-specific disruptions may now require different policy responses

The U.S. Securities and Exchange Commission proposed new rules on October 1 to establish a regulatory framework for investment advisers and funds to custody crypto assets under federal securities laws. SEC Chair Paul Atkins stated the regulations would provide a compliant pathway for crypto asset custody that previously did not exist.

• The proposed rules aim to create clear regulatory guidelines specifically for investment funds' custody of cryptocurrency assets
• SEC Chair Paul Atkins emphasized this would be the first compliant pathway for investment advisers and funds handling crypto custody
• The new framework addresses a regulatory gap in how crypto assets are held and managed under federal securities laws

US stocks closed slightly higher on Thursday after recovering from early losses, with the S&P 500 up 0.23%, Nasdaq up 0.07%, and Dow up 0.06%. The recovery came as Treasury yields pulled back from 24-year highs, with the 10-year yield briefly hitting 5.342% before retreating. Market expectations for a Fed rate hike in October fell to 28.2% from 68.6% a week earlier following softer inflation data.

• The 10-year Treasury yield reached 5.342% (highest since April 2002) before declining 6 basis points; the two-year yield fell nearly 10 basis points in its largest daily drop since August 2025
• Energy was the top-performing S&P sector with nearly 2% gains as Brent crude jumped over $4 and WTI rose 1.6% to above $91 per barrel on China's fuel export suspension and Iran tensions
• Jobless claims came in at 210,000 (vs 200,000 forecast) while ISM manufacturing PMI showed rising input prices; Fed Vice Chair Jefferson indicated patience on rate hikes despite continued inflation concerns

Investment advisor Karan Ramchandani warns that U.S. small business owners, particularly those near the Canadian border, will bear significant costs from new tariffs on Canadian goods including dairy, alcohol, and automobiles. The tariffs, combined with uncertainty over the USMCA trade agreement's annual review instead of 16-year renewal, are freezing long-term capital investment and forcing supply chain rerouting.

• New tariffs on approximately $1 billion in Canadian goods will initially be absorbed by manufacturers but eventually passed to consumers through higher prices, particularly impacting auto, steel, and lumber sectors
• Trump's refusal to participate in automatic USMCA renewal means the agreement now faces annual review instead of 16-year renewal, discouraging billion-dollar long-term investments like new manufacturing plants
• Canada has already begun diversifying away from U.S. trade, reducing dependence from over 75% to less than 33% of exports, while working with the EU on deals to increase bilateral trade by 80%

Global M&A activity fell 41% to $993 billion in Q3 2026, marking the first sub-$1 trillion quarter since Q2 2025, driven by rising borrowing costs as the 10-year US Treasury yield hit its highest level since 2002. Despite the quarterly decline, year-to-date M&A is up 28% to $3.9 trillion, the strongest since 2001, fueled by AI-driven dealmaking and strategic technology investments.

• Only 10 megadeals over $10 billion were announced in Q3 2026, the lowest since Q4 2024, while strategic tech stake purchases accounted for 24% of global M&A year-to-date
• Asia Pacific M&A bucked the trend with $242 billion in deals, up 8% from Q2 and 36% year-over-year, while US and European dealmaking fell sharply
• IPO activity reached $215 billion year-to-date (highest since 2021) led by SpaceX's June debut, though some tech IPOs have been delayed due to rising rates and investor caution ahead of midterm elections

President Trump is considering removing up to three Federal Reserve Board of Governors members—Jerome Powell, Lisa Cook, and Michael Barr—following an inspector general report on costly headquarters renovations. However, recent Supreme Court rulings and legal protections suggest any removal attempts would face significant legal hurdles and lengthy litigation. The IG report found management problems but no criminal violations or administrative misconduct that would clearly justify removals.

• The Fed IG report criticized management of a headquarters renovation that cost about $1 billion more than expected but found no criminal violations or administrative misconduct that would directly support removal for cause.
• A Supreme Court ruling in June 2025 blocked Trump's attempt to remove Lisa Cook, requiring notice and opportunity to respond before removal, and allowing governors to remain in their positions during litigation.
• Former Fed General Counsel Scott Alvarez warns that prolonged litigation could backfire on Trump by keeping targeted governors in their seats longer, with Powell pledging to stay until the legal threat has 'transparency and finality' (his term extends through January 2028).

The Bureau of Labor Statistics will release the September jobs report Friday at 8:30 a.m., with economists expecting 84,000 new jobs and unemployment holding at 4.1%. Federal Reserve officials have emphasized labor market stability while focusing more attention on inflation concerns. Despite solid employment metrics, worker sentiment has fallen to record lows amid concerns about job security and economic uncertainty.

• Payroll growth has averaged 80,000 monthly in 2026 but remains volatile, ranging from a loss of 156,000 jobs in February to gains of 214,000 in March
• Average hourly earnings growth is expected at 3.1% year-over-year in September, down from around 4% earlier in the year, with Fed officials noting wages are not driving inflation
• Markets have sharply reduced odds of a Fed rate hike at the Oct. 27-28 meeting following comments from officials like NY Fed President Williams that 'there is no need for urgency' on further rate increases

The first full trading week of October 2026 features a light economic calendar headlined by the release of September's FOMC meeting minutes on Wednesday, October 7. Key data releases include U.S. services PMI, ISM services data, and the University of Michigan's preliminary consumer sentiment survey. A handful of companies including PepsiCo, Delta Air Lines, Constellation Brands, and Levi Strauss are scheduled to report earnings.

• FOMC meeting minutes from September will be released Wednesday, October 7, alongside consumer credit data
• Economic data releases include services PMI and ISM services (Oct 5), trade balance (Oct 6), jobless claims (Oct 8), and University of Michigan consumer sentiment (Oct 9)
• Select earnings reports expected from PepsiCo, Delta Air Lines, Constellation Brands, and Levi Strauss during the week

A Trump administration rule aimed at cutting Medicare drug prices will apply to only four drugmakers after exempting companies that signed separate 'most favored nation' pricing agreements with the White House. The final rule also drastically reduced projected savings from $11.9 billion to $440 million over the model period.

• The GLOBE price-setting model exempts manufacturers with separate White House deals, leaving only 4 unnamed companies subject to the rule
• Projected Medicare Part B savings plummeted 96% from $11.9 billion in the proposed rule to just $440 million in the final version
• Over two dozen drugmakers including Pfizer, Eli Lilly, and Novo Nordisk signed separate pricing agreements that the White House projects will save governments $64.2 billion over the next decade

Russian President Vladimir Putin announced Russia will withhold diesel supplies from global markets until Western sanctions are lifted, extending an export ban through October. This decision exacerbates existing global diesel shortages caused by the Ukraine conflict, with U.S. diesel prices hitting record highs above $6.50 per gallon, posing political risks for President Trump ahead of midterm elections.

• Putin stated Ukrainian strikes on Russian refineries have cost Russia 1% of GDP, and Moscow is now retaliating by restricting diesel exports despite having sufficient domestic supply
• Russia extended its diesel export ban through end of October, further straining global energy markets already affected by conflicts in Ukraine and Iran
• U.S. diesel prices have surged past $6.50 per gallon to record levels, creating political pressure for Trump before midterm elections

Mortgage rates surged to their highest level since November 2023, with the 30-year fixed rate climbing to 7.28% from 7.03% the previous week, according to Freddie Mac. The increase is driven by spiking bond yields, with the 10-year Treasury yield hovering around 5.23%. Rising borrowing costs are putting pressure on the housing market despite otherwise favorable economic conditions.

• The 30-year fixed mortgage rate jumped to 7.28%, up from 7.03% last week and significantly higher than 6.34% a year ago
• The 15-year fixed mortgage rate also climbed to 6.6% from 6.42% the previous week
• The 10-year Treasury yield, which mortgage rates closely track, reached approximately 5.23% as of Thursday afternoon