Market Information Thursday 08 October 2026

Foreign investors withdrew $26.3 billion from emerging market stocks and bonds in September, marking the first monthly outflow since June. A hawkish U.S. Federal Reserve pushed Treasury yields and the dollar higher, reducing the appeal of emerging market assets. Fixed income experienced its first outflow since March, while substantial selling of South Korean equities contributed to large equity outflows. Analysts warned that continued policy tightening in advanced economies could further pressure emerging markets.

Moody’s upgraded its outlook for sub-Saharan African countries to positive, citing successful reforms, stronger commodity prices and improved access to financing. The rating agency expects regional growth of 4.3% in both 2026 and 2027 and forecasts lower borrowing requirements and stabilising public debt levels. However, it warned that heavy debt-servicing burdens, climate risks, inflation pressures and security challenges remain significant vulnerabilities for the region.

Business confidence among large Japanese manufacturers rose in October to its highest level in nearly five years, supported by strong semiconductor-related demand. Confidence in precision machinery, metal products, and steel sectors improved. In contrast, sentiment among non-manufacturers deteriorated sharply due to higher costs, weaker consumer spending, rising interest rates and construction costs. Manufacturers expect a modest improvement over the next three months, while non-manufacturers anticipate further weakening.

The 6M Euribor decreased with 4 basis points to 2.95% compared to previous business day. The 10Y Swap is unchanged at 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.