Crude oil prices have risen to nearly $104 per barrel. The Canadian dollar has strengthened to a monthly high

By JustMarkets 

On Monday, the US stock indices resumed growth thanks to active dip‑buying in the technology sector, which more than offset declines in banking stocks. By the end of the day on Monday, the Dow Jones Index (US30) fell by 0.07%. The S&P 500 Index (US500) rose by 0.41%. The Technology Index NASDAQ (US100) closed Monday in the green at 1.17%. Investors ignored last week’s concerns about the debt burden of AI infrastructure companies (particularly CoreWeave) and the financial results of Anthropic, returning demand to key semiconductor and platform assets: Amazon shares rose by 5%, Tesla by 3.4%, Micron by 3.1%, Intel by 3%, while Nvidia, Alphabet, and Microsoft added between 0.8% and 1.4%. Meanwhile, the financial sector remained under pressure after digesting third‑quarter earnings, which restrained the overall dynamics of the broader market. Wells Fargo shares fell by 2.5%, Bank of America by 1.7%, and Morgan Stanley lost 1%.

The Canadian dollar (CAD) strengthened to around 1.41 USD/CAD, reaching a monthly high following the release of September inflation data and hawkish signals from the Bank of Canada. Although annual consumer inflation rose to a four‑month peak of 3.1% due to higher energy prices (slightly below the consensus predictions of 3.2%), core components showed restraint: median CPI slowed to 1.9%, and the trim measure fell to 1.8%. Nevertheless, the regulator is shifting its focus toward the risks of accelerating prices: Bank of Canada Governor Tiff Macklem stated his intention to significantly revise the quarterly inflation expectation upward at the upcoming meeting.

In Europe, by the end of the day on Monday, Germany’s DAX (DE40) fell by 1.18%, France’s CAC 40 (FR40) closed down 1.11%, Spain’s IBEX 35 (ES35) declined by 1.49%, and the UK’s FTSE 100 (UK100) closed the trading session lower by 1.08%. European stock markets ended Monday’s session with a notable decline, reacting to outbreaks of civil unrest in France and Italy. Protests against rising living costs, which escalated into clashes with law enforcement, significantly increased political uncertainty and jeopardized the passage of national budgets ahead of elections, triggering sell‑offs in the sovereign debt markets of major Eurozone countries. Rising government bond yields and fears of contagion in the Eurozone sovereign sector hit financial institutions first: shares of banking giants BNP Paribas, Deutsche Bank, UniCredit, Intesa Sanpaolo, and Santander fell by more than 2%. Pressure also spread to the industrial and defense segments, where Airbus and Rheinmetall shares dropped nearly 3%.

WTI crude oil prices climbed to nearly $104 per barrel, reaching their highest levels in the past month after a powerful 10% rally the week before. The key driver of growth is the sharp escalation of geopolitical tensions in the Middle East: warnings from Iranian security forces about readiness for a new response plan, a series of attacks on commercial vessels near the Arabian Peninsula, and Saudi air defenses intercepting Houthi missiles over the Red Sea aimed at the Yanbu terminal have increased the risks of physical supply disruptions. Security breaches in the region reduced the seven‑day moving average of oil transit through the key Strait of Hormuz to 8.5 million barrels per day compared with the usual ~20 million bpd.

In Asia, Japan’s Nikkei 225 (JP225) fell by 0.62%, China’s FTSE China 50 closed lower by 0.04%, Hong Kong’s Hang Seng (HK50) did not trade yesterday, and Australia’s ASX 200 (AU200) closed Monday higher by 0.44%.

The Australian dollar (AUD) is holding near $0.70, maintaining stability above recently reached local lows. Investors are assessing monetary‑policy signals ahead of upcoming key macroeconomic releases and a series of public speeches by Reserve Bank of Australia leadership. Market focus is shifting to scheduled remarks by RBA Deputy Governor Andrew Hauser and Governor Michele Bullock, from whom markets expect clarification of monetary‑policy assessments after four rate hikes this year to 4.60%.

The strengthening of the offshore yuan (CNY) to 6.68 per dollar – its highest level since summer 2022 – reflects the positive momentum of the Chinese economy following the rebound in GDP growth in the third quarter to 4.5%. Achieving an overall growth rate of 4.6% over the first nine months of the year confirms the economy’s resilience on its path toward meeting the 4.5-5% target, allowing Beijing to avoid aggressive monetary stimulus. The People’s Bank of China’s decision to keep the one‑year LPR at 3% and the five‑year rate at 3.5% indicates that authorities are relying on targeted support rather than broad liquidity injections.

S&P 500 (US500) 7,690.73 +31.29 (+0.41%)

Dow Jones (US30) 51,966.03 -36.38 (-0.07%)

DAX (DE40) 25,319.77 -302.84 (-1.18%)

FTSE 100 (UK100) 10,764.69 -117.21 (-1.08%)

USD Index 101.99 +0.15 (+0.15%)

News feed for: 2026.10.20

• China PBoC Loan Prime Rate (m/m) at 04:00 (GMT+3) – CHA50, HK50 (HIGH)
• Switzerland Trade Balance (m/m) at 09:00 (GMT+3) – CHF (MED)
• UK Unemployment Rate (m/m) at 09:00 (GMT+3) – GBP (HIGH)
• UK Average Earnings (m/m) at 09:00 (GMT+3) – GBP (MED)
• UK Claimant Count Change (m/m) at 09:00 (GMT+3) – GBP (MED)
• Eurozone ZEW Economic Sentiment (m/m) at 12:00 (GMT+3) – EUR (MED)
• US Building Permits (m/m) at 15:30 (GMT+3) – USD (MED)

By JustMarkets

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.