China has reportedly launched a customs crackdown on NVIDIA (NVDA) AI chips, according to the Financial Times. This move could have significant implications for the global technology industry, particularly as the US President Trump has suggested that the US may need to stop importing massive amounts of goods from China. In other economic news, the Bureau of Labor Statistics (BLS) is preparing to release a September US Consumer Price Index (CPI) report despite the ongoing government shutdown, according to the New York Times. Bloomberg sources suggest that staff have been recalled for the preparation of the publication by the end of the month.

In terms of global markets, European bourses are mixed and generally hold a negative bias, while US equity futures are slightly higher. The US Dollar Index (DXY) has eased after four days of gains, while the Japanese Yen (JPY) sees volatility following the collapse of a 26-year-old coalition. Meanwhile, US Treasuries (USTs) gain alongside European government bonds, while the French bond market awaits an announcement from the Prime Minister.

In energy markets, WTI and Brent crude are on the backfoot as a Gaza ceasefire plan takes shape. However, gold prices are marginally higher. Looking ahead, key economic data releases include the Canadian Employment Report for September and the University of Michigan’s Preliminary Consumer Sentiment Index for October. Additionally, Federal Reserve officials including Daly, Goolsbee, and Musalem will be speaking at various events.

Overall, these developments highlight the ongoing complexities in global trade and economic policy, as well as the potential impact of these factors on financial markets. As always, staying informed and up-to-date on these issues can help investors make more informed decisions in their portfolios.