Market Updates

06 October 2026 – Daily Market Updates Markets Morning Brief: Tech Momentum Lifts Risk Appetite, Yields Ease, Bonds in Focus Overview Global equities started the week on firmer footing as large-cap technology led gains and energy prices cooled, taking some pressure off inflation expectations and government bond yields. The renewed appetite for growth themes comes as a leading AI chipmaker edges toward another multi-trillion-dollar valuation milestone on the back of a stronger outlook and an expansive share repurchase plan. At the same time, fixed income remains in the spotlight after a high-profile hedge fund founder cautioned that major foreign holders could scale back purchases of US debt, a development that would keep term premiums elevated and rates volatility heightened. Equities US: Futures point to a positive open, with megacap tech and AI-linked hardware/software pacing advances. The latest guidance and capital return actions from marquee names have reinforced the view that secular demand for compute and data infrastructure remains robust even as macro data soften at the margins. Market breadth has improved versus recent weeks, though leadership still skews toward quality growth. Europe: Stocks are higher, aided by cyclicals and industrials on the back of easing energy costs, while rate-sensitive sectors benefit from a pullback in yields. Defensive pockets lag slightly as investors rotate back into risk. Asia: Performance was mixed overnight. Japanese shares outperformed amid strength in semiconductors and capital goods, while parts of North Asia saw profit-taking in exporters and internet names. Southeast Asia was broadly steady. Fixed Income Treasuries: Yields edged lower as the dip in crude tempered near-term inflation anxiety and a risk-on tone supported duration. Still, supply-demand dynamics remain a concern. Comments suggesting potential waning demand from key overseas buyers have refocused attention on term premium, auction takedowns, and the path of fiscal deficits. Expect the curve to remain sensitive to energy moves, labor-market signals, and any guidance from policymakers on the timing and magnitude of future rate adjustments. Credit: Primary issuance continues at a healthy clip. Higher-quality corporates enjoy supportive technicals, while lower-rated borrowers face a higher clearing yield amid tighter underwriting and selective investor appetite. Private credit and structured solutions remain active in financing digital infrastructure and energy-transition projects. Commodities Energy: Oil prices slipped as supply headlines and growth concerns outweighed geopolitical risk, easing some pressure on headline inflation. Policy steps aimed at containing refined-fuel costs add to near-term downside for cracks. Attention turns to upcoming inventory data and any signals from producers on output strategy. Metals: Gold is rangebound as modestly lower real yields offset a firmer risk tone. Industrial metals trade mixed, tracking China demand headlines and inventory trends. Currencies The US dollar is little changed on a trade-weighted basis. High-beta FX is modestly firmer alongside equities, while haven currencies lag. Rate differentials and front-end yield moves remain the primary drivers. Themes to Watch AI and data center buildout: The market continues to reward firms leveraged to accelerated computing, networking, and specialized software. A leading chipmaker’s approach toward a new valuation landmark underscores investor conviction in multi-year AI demand. Emphasis on recurring revenue, ecosystem breadth, and supply-chain execution remains key. Power procurement for compute: Major technology platforms are increasingly securing long-term, zero-carbon baseload contracts, including nuclear, to meet data center energy needs. This underscores a tightening intersection of digital infrastructure and utilities, with potential implications for capacity additions, regulated returns, and carbon targets. Bond market plumbing: With deficits elevated and central banks stepping back from peak quantitative easing, foreign official and private demand is pivotal. Any retrenchment by large holders could mean higher term premia and choppier auctions, even if cyclical inflation cools. Portfolio barbells that pair high-quality duration with quality equities remain a common approach to navigating crosscurrents. Corporate and Deal Flow Capital returns: Buybacks are back in focus across segments of US large-cap tech, supported by strong cash generation. Investors will parse authorizations and pace versus capex needs for AI and cloud. M&A and financing: Healthcare services, energy transition, and digital infrastructure continue to see active dealmaking. In leveraged finance, transactions tied to AI-related buildouts are clearing at elevated coupons, reflecting both strong demand for capital and a higher-for-longer rate backdrop. Macro Calendar and Catalysts Data: Watch upcoming labor-market indicators, services activity surveys, and inflation prints for confirmation that disinflation is progressing without a sharp growth downdraft. Policy: Central bank speakers and meeting minutes will be scrutinized for clues on how long restrictive settings may persist. Any shift in balance-sheet plans or guidance on neutral rates could move the long end. Supply: Treasury and sovereign auctions across developed markets will test appetite at current yield levels; bid-to-cover ratios and indirect takedown shares are key tells. Earnings: Early corporate updates will offer a read on demand elasticity, pricing power, and inventory normalization into year-end. Positioning Considerations Equities: Maintain a quality bias within growth—free cash flow, balance-sheet strength, and durable moats remain prized. Consider selective cyclicals tied to industrial automation and efficiency gains. Keep an eye on margins as input costs and wage dynamics evolve. Fixed income: A barbell that pairs short-duration high-quality credit with intermediate Treasuries can help balance carry and convexity. Be selective in high yield and leveraged loans as dispersion widens. Alternatives and real assets: Infrastructure linked to data, grid modernization, and clean baseload power offers potential diversification, though project and policy risks warrant careful underwriting. Key Risks Sticky services inflation or a renewed energy spike that delays policy easing Weaker global growth, especially in China and Europe, weighing on cyclicals Tightening financial conditions from sustained high real yields and wider credit spreads Policy and geopolitical developments that disrupt supply chains or capital flows Bottom Line The tone has brightened as tech leadership reasserts itself, oil cools, and yields ease. But the bond market’s structural questions—who buys, at what price, and with what term premium—haven’t gone away. For now, investors are leaning into quality growth and secular themes while keeping duration as a shock absorber and staying selective in credit. Disclaimer: Trading foreign exchange and/or contracts for difference

05 October 2026 – Daily Market Updates Morning Markets Briefing: Europe’s Bond Stress Returns, Fed Path Repriced Global markets are mixed to start the week as investors reassess interest-rate trajectories and watch for signs of spillover from renewed pressure in parts of Europe’s sovereign bond market. A chunky move higher in long-dated US yields, oil holding near triple digits, and a softer euro are setting the tone across assets. Market snapshot (as of 06:10 AM ET; subject to change) US 10-year Treasury: ~5.28% (+1 bp) Brent crude: ~$102.5 (+0.3%) US equity futures: -0.2% Stoxx Europe 600: +0.2% Nikkei 225: +2.4% EUR/USD: ~1.12 (-0.4%) Europe: spreads widen, contagion fears resurface A synchronized selloff across several euro-area sovereigns late last week has pushed investors to dust off their fragmentation playbooks. Pressure that had been concentrated in a few markets broadened to larger peers, reviving concerns that stress in one pocket could increasingly influence funding costs elsewhere. Key differences from the last European sovereign crisis remain: stronger bank capital, a deeper policy toolkit and targeted central-bank facilities if needed. Even so, higher deficits, persistent inflation pressures and volatile politics are re-pricing risk premia. The euro has slipped to multi-month lows as rate differentials widen and investors add hedges. What to watch: moves in core-periphery spreads, demand at auctions, ECB communication on reinvestments/backstops, and cross-asset volatility (particularly bank equities versus sovereign CDS). US rates: expectations cool after softer jobs data Friday’s weaker employment print tempered the odds of another policy move this month, with market-implied probabilities of an additional hike easing. The focus now shifts to midweek minutes from the latest Fed meeting for clues on officials’ inflation concerns and views on term premium and supply. Long-end yields remain elevated, reflecting a combination of resilient nominal growth, heavy Treasury issuance and a global repricing of duration. Rate volatility has picked up, and curves remain relatively flat to slightly steeper in the long end as investors demand more compensation for holding maturity risk. What to watch: the Fed minutes, upcoming supply, breakeven inflation, and whether risk assets can digest higher real yields without a broader de-risking. Equities: earnings approaching as leadership rotates US futures are modestly lower while European stocks edge up and Asia outperformed, led by a sharp rally in Japan. Beneath the surface, leadership remains concentrated in cash-generative tech and AI beneficiaries, though higher discount rates are challenging longer-duration growth valuations. Corporate activity is in focus. A major European industrial group agreed to acquire a US software firm in a multibillion-dollar deal, underscoring how AI-oriented software and industrial automation remain strategic priorities for cash-rich buyers. In the semiconductor ecosystem, collaborative announcements and partnership chatter continue to influence relative performance between accelerator leaders and alternative compute suppliers. Energy and commodities: oil near $100 keeps inflation sticky Brent crude is steady above $100 as supply discipline, shipping risks and resilient demand keep the market tight. Liquefied natural gas flows through key Middle East chokepoints have been improving from September levels as producers work to alleviate shortages, but route risks and seasonal demand keep price volatility elevated. Higher energy remains a headwind for disinflation, feeding into breakevens and complicating central-bank reaction functions, particularly in regions where currency weakness amplifies imported costs. FX: dollar bid, euro softer The US dollar is firmer against most majors, supported by higher US real yields and safe-haven demand. The euro has retreated to its weakest levels in over a year amid Europe’s rate and fiscal uncertainty. Watch for policy commentary, auction outcomes and data surprises to drive near-term direction. In emerging markets, political headlines are a key driver. Brazilian assets are poised for strength following a market-friendly first-round election showing, with banks and domestic demand plays in focus. Currency and rates markets will calibrate how policy priorities evolve into the runoff. The week ahead: policy signals and bellwether earnings Central banks: Minutes from the Federal Reserve’s September meeting (the one that delivered the first hike in three years) should give color on inflation risks, growth assessments and how officials view the balance between ongoing disinflation and sticky components like housing and energy. Corporate earnings: A busy slate includes Constellation Brands (Tue). On Thursday, updates from Tesco, PepsiCo and Fast Retailing will shed light on consumer demand, pricing power and input costs. Delta Air Lines reports Friday, offering a read on travel demand, fuel costs and capacity plans. Positioning and flows: Monitor fund flows into duration hedges, quality equities and energy producers as investors balance higher yields against still-solid earnings expectations for large-cap tech. Key themes to monitor Europe’s fragmentation risk: Are spread moves idiosyncratic or systemic? Watch for signs of stress transmission across sovereigns, banks and the euro. The “higher-for-longer” rate regime: Elevated term premium and supply could keep long-end yields sticky, raising the bar for equity multiples. Energy’s policy impact: Oil near $100 complicates disinflation. Any guidance from producers or evidence of demand destruction will be pivotal. Earnings breadth: With headline tech profits expected to post robust gains, focus turns to whether strength broadens beyond AI-enabled leaders into cyclicals and services. Risk management considerations Rates: Review duration exposure and consider hedging tactics given elevated volatility at the long end. FX: For EUR- and EM-exposed portfolios, reassess hedge ratios and sensitivity to widening rate differentials. Equities: Tilt toward balance-sheet strength and cash flow resilience while watching valuation sensitivity to real yields. Commodities: Energy user hedges may be prudent as winter approaches and supply risks linger. Disclaimer: Trading foreign exchange and/or contracts for difference on margin carries a high level of risk, and may not be suitable for all investors as you could sustain losses in excess of deposits. The products are intended for retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. The content of the Website must not be construed as personal advice. For

02 October 2026 – Daily Market Updates Daily Market Brief: Rising Yields Squeeze Equities; French Fiscal Strains Deepen At a glance Government bond yields remain elevated, keeping financial conditions tight and pressuring rate‑sensitive pockets of the equity market. Equity index resilience continues to mask weak breadth; leadership is concentrated in a handful of large tech and AI beneficiaries. Oil eased after flirting with the $100 mark, easing some near‑term inflation anxiety but leaving the broader “higher-for-longer” narrative intact. The US labor market update is due today and will shape expectations for the policy path and year‑end risk appetite. In Europe, France’s funding premium over Germany has widened, weighing on the euro and reviving discussion of potential spillovers across the region. Global markets Equities: Major US equity benchmarks are holding near highs, but the undercurrent is uneven. Smaller companies, banks, utilities, real estate and other interest‑rate‑sensitive groups have lagged as borrowing costs bite. Cyclical areas tied to capital spending continue to hinge on the durability of the AI build‑out and broader earnings momentum. Europe opened firmer, while Asia was mixed to softer amid the global rates backdrop. Rates: Longer‑dated US Treasury yields are hovering above the 5% area for the 10‑year, reflecting sticky growth and inflation expectations as well as heavier supply. Yield curves remain relatively flat, signaling tighter financial conditions even as near‑term policy expectations fluctuate around incoming data. Core European yields rose, with French bonds underperforming. Credit: Primary markets remain active, but the cost of financing has moved up and investor selectivity has increased. Large, high‑profile deals are absorbing liquidity and exposing weaker balance sheets, leading to wider dispersion in spreads between higher‑ and lower‑quality issuers. Commodities: Crude retreated after edging toward triple‑digits, as traders balanced tight supply with concerns that elevated rates could temper demand. Industrial metals were mixed, reflecting cross‑currents between manufacturing softness and energy‑related cost pressures. Currencies: The US dollar stayed firm alongside high US yields. The euro slipped to multi‑month lows, pressured by France’s widening spread to German bunds and uneven regional growth. Yen watchers remain alert for policy or verbal pushback if FX volatility accelerates. Focus: What higher yields mean for stocks now Narrow leadership: Market gains remain concentrated in a small group of mega‑caps tied to secular AI and cloud themes. Outside that cohort, the average stock has softened as higher discount rates compress valuations and raise the hurdle for earnings surprises. Earnings math: Higher real yields challenge elevated multiples unless profit growth remains robust. Companies with durable cash generation, strong balance sheets, and pricing power still command a premium; levered and long‑duration stories face a tougher backdrop. Positioning: Flows continue to favor quality and cash‑rich franchises. Long/short dispersion has increased, creating a more idiosyncratic, earnings‑driven tape into year‑end. Europe watch: France’s risk premium widens The spread between French government bonds and German bunds has climbed to the widest in years, reflecting investor concern over fiscal trajectories and political constraints. While still far from crisis territory, persistent underperformance raises questions about knock‑on effects for regional risk sentiment, bank funding costs, and the euro. What to monitor next: Budget progress and guidance, rating‑agency updates, EU fiscal rule discussions, and demand at upcoming auctions. A sustained widening could tighten financial conditions across parts of the bloc. The day ahead US employment report: Markets are looking for signs that hiring and wage growth are cooling enough to support a slower policy path without tipping into a sharper slowdown. A downside surprise could ease yields and broaden the equity bid; an upside beat may reinforce higher‑for‑longer expectations. Central bank speakers and supply: Any guidance on balance sheet plans and term premiums will be in focus, as will the tone around future issuance calendars. Investment considerations Quality over leverage: Favor balance‑sheet strength and consistent free cash flow as financing costs rise. Earnings resilience: Prioritize firms with pricing power and visible demand, particularly where earnings revisions remain positive. Duration balance: In multi‑asset portfolios, reassess interest‑rate exposure and consider barbell approaches to manage volatility. Liquidity matters: Elevated yields and episodic risk‑off moves argue for maintaining ample liquidity and being selective in lower‑quality credit. Diversification: Concentration risk is elevated; ensure exposures are not overly dependent on a single theme or region. Bottom line Higher long‑term yields are doing what they usually do—tightening financial conditions and pressuring the most rate‑sensitive corners of the market—while headline indices hold up on the back of narrow leadership. Today’s US labor data and Europe’s evolving fiscal picture will help determine whether markets can broaden out into year‑end or remain reliant on a small set of winners. Disclaimer: Trading foreign exchange and/or contracts for difference on margin carries a high level of risk, and may not be suitable for all investors as you could sustain losses in excess of deposits. The products are intended for retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. The content of the Website must not be construed as personal advice. For retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. Rolling Spot Contracts and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of our retail client accounts lose money while trading with us. You should consider whether you understand how Rolling Spot Contracts and CFDs work, and whether you can afford to take the high risk of losing your money. 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