investingLive European FX markets wrap: Markets subdued, Japan sees new ruling coalition

Headlines:

Markets:

• USD leads, GBP lags on the day
• European equities mostly higher; S&P 500 futures up 0.3%
• US 10-year yields flat at 4.008%
• Gold up 0.3% to $4,262.96
• WTI crude oil down 1.0% to $56.66
• Bitcoin up 1.9% to $110,758

It was a rather dead session to start the new week as markets are picking up from where they left off last week. And amid the US government shutdown and now cautiously optimistic mood ahead of the Trump-Xi meeting next week, there’s not much to work with in general.

Major currencies are stuck in relatively narrow ranges on the day, with the dollar keeping steadier overall. There’s only some light extension to the daily ranges as traders don’t have much appetite to go running really.

USD/JPY was trading up to 151.20 early in Asia but is settling around 150.60-80 levels in Europe. Japan’s LDP and Nippon Ishin parties formalised their coalition agreement ahead of tomorrow’s premiership vote. That should see Takaichi take office as Japan’s first femal prime minister but much of that is already priced in before the weekend.

Besides that, there isn’t really anything interesting with the changes being light and nothing noteworthy whatsoever.

In the equities space, we’re seeing stocks post modest gains in Europe although the French benchmark index is failing to join the party as BNP Paribas shares are down over 8% after Sudan court ruling that could result in a costly settlement. But elsewhere, regional indices are posting solid gains with US futures also sitting a little higher on the day.

In other markets, bonds are not up to much amid a rather tepid mood while precious metals are also observing light changes as compared to the volatile swings we’ve been accustomed to in the past weeks. Gold and silver are both sitting a little higher on the day, keeping in check after the Friday drop.

With the US government shutdown still persisting, we can only watch and wait for US-China headlines at most to hopefully keep things interesting. Otherwise, it’s a long wait until the Fed this month-end and with the spotlight also turning to the Trump-Xi meeting in South Korea.