Briefings

Week InReview: October 23, 2026

Stocks stabilize after rout.

Stocks are stabilizing after yesterday's rout in the AI trade, though further gains in oil prices are keeping sentiment cautious.
The euro area's private sector slowed more than expected in October, weighed down by France, the region's No. 2 economy, as it grapples with fiscal and political tensions.
Asian stocks pared earlier losses, with the Kospi trimming its more than 4% drop to less than 1%. Nikkei recovers to trade ~0.7% lower. US equity index futures fluctuate between gains and losses, with Nasdaq-100 contracts steady after the cash benchmark slumped almost 3% in the US session.
The 10-year Treasury yield was little changed at 4.96%, after plunging 17bps in the US as a rout in AI stocks and market turmoil in France fueled haven demand. A gauge of the inverse relationship between US government bonds and AI-focused stocks has strengthened to levels last seen a year ago. JGBs extended gains, with the benchmark yield falling ~10 basis points to 2.78%. Meanwhile, Japan's key price gauge rose above the BOJ's target level for the first time this year.
Treasuries rallied for their best day in more than a year. French bond stress i ntensified, driven by a broad flight from risk and the threat of another round of weekend protests. The yen surged to a 156 handle against the dollar as a global equity selloff boosted demand for havens.