Bonds & Stocks
More evidence of a slowdown in the US jobs market reinforced bets the Federal Reserve will cut interest rates in its final policy meeting of 2025, driving bond yields down alongside the dollar.Treasuries rose across the curve, sending two-year yields below 3.5%. The dollar dropped against all of its developed-market peers. An initial advance in US equity futures sputtered after The Information said Microsoft Corp. lowered expectations for how quickly it can get customers to spend money on newer AI products. Bitcoin extended its rebound from a recent selloff.
Economy
US industrial production barely rose in September, restrained by flat factory output that is consistent with sluggish manufacturing. The 0.1% increase in production at factories, mines and utilities followed a downwardly revised 0.3% decline the previous month, according to the Federal Reserve. The report, issued Wednesday, was delayed due to the federal government shutdown.
World
The European Union proposed two options to refill Ukraine’s war-strained budget, suggesting either a loan backed by frozen Russian assets or one backed by the bloc’s own budget. The legislative proposals came just hours after Belgium preemptively rejected the Russian assets plan, which would use Russia’s immobilized central bank funds to cover €90 billion ($105 billion) of Ukraine’s financial needs. Belgium, which houses most of the Russian assets, said it remains worried the country could be forced to repay the massive loan on its own.