Market Information Wednesday 07 October 2026

US credit card spending on luxury goods fell 6% year-on-year in September, the third consecutive monthly decline, as political uncertainty ahead of the November midterms, rising Treasury yields and the economic fallout from the Iran war weigh on consumer confidence. The weakness is particularly acute in watches and jewellery, while leather goods and ready-to-wear showed some sequential improvement, with brands most exposed to the US market including LVMH, Tapestry and Ferragamo. LVMH reports third-quarter sales on 12 October, with analysts expecting luxury groups to flag softer US demand after two consecutive years of sector-wide contraction.

Singapore’s state investment firm Temasek has identified an unwinding of the AI trade as the biggest near-term risk to markets, warning that roughly half the stocks in the Russell 3000 are already more than 20% below their June highs despite the S&P 500 holding near record levels. Chief Investment Officer Rohit Sipahimalani flagged tighter AI regulation or disappointing returns on corporate AI spending as potential triggers for a reversal, though he does not see either as imminent. Temasek remains bullish on AI over the longer term and is looking to shift its AI exposure from around 50% in public markets toward 70 to 75%, to retain greater flexibility to adjust positions as the industry evolves.

France’s 10-year bond yield briefly hit a 24-year high above 5% last week, as investors grow increasingly concerned about the country’s fragile public finances and political instability ahead of the 2027 presidential election. A senior Citadel executive warned that France has “no room for mistakes,” adding that while the country does not yet pose a systemic risk to Europe, a fiscal crisis of that scale would have continent-wide consequences. Far-right frontrunner Marine Le Pen sought to bolster her credibility by pledging 140 billion euros in budget savings over five years, though economists questioned whether cuts of that scale were achievable given the lack of detail in her proposals.

The 6M Euribor decreased with 7 basis points to 2.99% compared to previous business day. The 10Y Swap decreased with 1 basis point to 3.58% 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.