• Dollar stays poised so far in European trading
• Equities hit the skids as higher yields is still the name of the game
• Gold stays in retreat, set for sixth straight day of losses
• Japan finance minister Suzuki: Closely watching FX moves with strong sense of urgency
• Japan’s Matsuno says closely watching FX moves with a high sense of urgency
• Eurozone September final manufacturing PMI 43.4 vs 43.4 prelim
• UK September final manufacturing PMI 44.3 vs 44.2 prelim
• UK September Nationwide house prices 0.0% vs -0.4% m/m expected
• Switzerland September manufacturing PMI 44.9 vs 40.5 expected
• SNB total sight deposits w.e. 29 September CHF 476.3 bn vs CHF 475.1 bn prior

Markets:

• CHF leads, AUD lags on the day
• European equities lower; S&P 500 futures flat
• US 10-year yields up 5.4 bps to 4.628%
• Gold down 0.7% to $1,835.49
• WTI crude up 0.9% to $91.61
• Bitcoin up 5.3% to $28,319

It’s a new week, month, and quarter but we’re getting the same old brand new theme in markets. The US government has averted a shutdown for now and equities gapped higher while bond yields surged to start the day.

But as has been the case over the past few weeks, there is always only room for one to be right and surprise, surprise.. It was the bond market again.

Higher yields continue to be the bane for equities while proving to be the boon for the US dollar.

The greenback surged higher across the board with USD/JPY continuing to stay within touching distance of the 150.00 mark, despite verbal intervention efforts by Japanese officials.

Meanwhile, EUR/USD is down 0.3% to 1.0530 levels while GBP/USD is down 0.3% to 1.2150 levels currently. The commodity currencies aren’t able to find much relief as well amid a turn in risk sentiment during the session. AUD/USD is the laggard, down 0.6% to 0.6395 at the lows for the day now.

As higher yields remain the name of the game, stocks are finding it tough to sustain any rallies today – especially now after month-end and quarter-end are done with. US futures were up around 0.7% initially but have all but pared those gains with S&P 500 futures now sitting down 0.1% on the day.

In the commodities space, it’s also the same old story with gold dropping lower amid higher yields while oil is the only one able to go toe to toe with the dollar it would seem.

This article was written by Justin Low at www.forexlive.com.