Market Information Monday 12 October 2026

Asian equities traded unevenly ahead of earnings season, as investors weighed stretched technology valuations and rising refinancing costs. Oil fell, with Brent down 1.3% to $103.38 a barrel, while a regional equity benchmark slipped 0.4%. Markets are also bracing for US inflation data, with headline CPI seen accelerating to 3.7%, reinforcing expectations of further rate rises.

The number of Japanese companies operating in China has fallen more than 22% to around 10,000, the lowest level in sixteen years. Intensifying local competition, rising labour and energy costs, and US trade barriers are squeezing margins and accelerating a shift of production towards other Asian markets. Geopolitical tensions have further weakened the investment case, underscoring a broader realignment of regional supply chains.

The EU remains divided over its 2028 to 2034 budget after Ireland proposed cutting €160bn from a €1.985tn spending plan. The Netherlands, Germany and other member states are pushing for deeper reductions as public finances come under pressure. The dispute highlights growing tensions between fiscal discipline and investment in European competitiveness, defence and innovation.

The 6M Euribor decreased with 1 basis point to 2.94% compared to previous business day. The 10Y Swap increased with 1 basis point to 3.57% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.