Japanese Prime Minister Shinzo Abe has announced his resignation as president of the Liberal Democratic Party (LDP), paving the way for an emergency leadership election. According to TBS, final arrangements are being made for a leadership vote on October 4th. This unexpected turn of events comes just weeks after Abe won a rare fourth term as Japan’s leader in an upper house election.

Meanwhile, across the Pacific, US President Donald Trump has announced the three finalists for the Federal Reserve chair nomination: Waller, Warsh, and Hassett. This development comes as trade talks between the US and China have reportedly made little progress towards a deal, with an impasse hit on the fentanyl issue, according to the Wall Street Journal.

In Europe, bourses are holding a positive bias, while US equities futures are incrementally firmer/flat. The Japanese yen is lagging amidst these developments, as investors eye the French prime minister’s confidence vote later today.

On the bond front, US Treasuries and Bunds are essentially flat, with more focus on Japan’s emergency LDP election and the upcoming OATs. Crude prices have gained post-OPEC, amidst geopolitical tensions, while gold has soared to yet another all-time high.

Eight members of the OPEC+ alliance have agreed to raise oil production by 137k bpd in October, citing a steady global economic outlook and current healthy market fundamentals. Looking ahead, key US employment trends for August, as well as the NY Fed SCE and French confidence vote, will be closely watched.

These recent developments highlight the ongoing complexities of global politics and economics, with implications for financial markets and investors alike. Stay tuned for further updates and analysis in this ever-evolving landscape.