Morning Wrap: Wall Street Rises on Anthropic News, Asian Markets Surge

📈 Stock Market

• Yesterday's session on Wall Street was undoubtedly successful, with major US indices closing the day with solid gains.

• The catalyst for the rally was the announcement of the upcoming initial public offering (IPO) of Anthropic, which is scheduled to take place in the second half of November.

• Driven by the IPO news, the tech-heavy Nasdaq gained 0.8%, the S&P 500 closed 0.7% higher, and the Dow Jones advanced 0.3%.

• Anthropic, the creator of the Claude AI model, filed IPO registration documents on the Nasdaq under the ticker ANT.

• The IPO could raise at least $100 billion at a company valuation of 1.5–2 trillion, which would make it one of the largest stock market debuts in capital markets history.

• This information markedly lifted sentiment on Wall Street and revived interest in the artificial intelligence sector, which in recent days had faced pressure from concerns over overinvestment, escalating infrastructure expenses, and the overall commercial return on multi-billion-dollar AI capital expenditures.

• Asian markets are enjoying very positive sentiment today, primarily driven by improved confidence across global financial markets.

• Japan's Nikkei 225 is climbing by approximately 1.6%, while South Korea's KOSPI is surging by over 3%.

🌐 Macroeconomics and Economic Policy

• The United States and Canada are negotiating an agreement to ease US tariffs on Canadian steel (up to 50%) and automobiles (25%), which could potentially be finalized ahead of the US midterm elections scheduled for November 3.

• A potential pact would support the North American manufacturing sector and diminish trade friction, although Washington is demanding additional concessions from Ottawa, leaving the final scope and viability of the deal uncertain.

• Producer price services inflation (PPI) in Japan accelerated to 3.7% YoY in September from 3.5% in August (following an upward revision to the previous print), confirming persistent underlying cost pressures across the economy.

• Stronger inflation reinforces the case for continued monetary policy tightening by the Bank of Japan (BoJ) and boosts market expectations for an interest rate hike in December, although at the upcoming October 29–30 meeting, consensus widely expects the policy benchmark rate to remain unchanged at 1.25%.

• Profits of Chinese industrial enterprises rose by 14.4% YoY in September (accelerating from 4.2% in August), propelled mainly by robust momentum in the technology industry and AI-related equipment manufacturing.

• On a cumulative basis (January–September), Chinese industrial earnings advanced by 15.5% YoY, yet the broader recovery remains uneven due to subdued domestic consumption and lingering distress in traditional manufacturing segments, keeping pressure on Beijing to introduce further consumer-supportive stimulus.

• South Korea's GDP expanded by 1.0% QoQ in the third quarter of 2026, significantly outpacing the market consensus of 0.7%, fueled directly by the global AI boom driving semiconductor exports and related capital investment.

• Despite vibrant export figures and industrial capital outlays, South Korean private consumption contracted by 0.2%, underscoring the asymmetrical nature of the domestic macroeconomic recovery.

🌍 Geopolitics

• Officials from Iran, Saudi Arabia, Pakistan, and Turkey held their inaugural quadrilateral regional security discussions in Tehran, pledging to maintain ongoing diplomatic dialogue to defuse Middle Eastern tensions.

• The diplomatic summit took place against the backdrop of intensifying Houthi strikes targeting Saudi critical infrastructure and heightened risks of renewed confrontation involving the US and Iran; any credible de-escalation would offer stability to crude oil pricing, though no binding treaties or peace pacts were formalized.

• Hostilities between Saudi Arabia and the Houthis continue to escalate despite diplomatic initiatives: on October 27, the Saudi-led coalition reported intercepting three ballistic missiles and four unmanned aerial vehicles (drones) directed at kingdom territory.

• Prior Houthi incursions caused severe disruptions to Saudi commercial aviation, ramping up political urgency for Riyadh to secure a lasting armistice.

💱 Currencies

• Japanese Finance Minister Satsuki Katayama signaled that the government stands fully prepared to execute decisive foreign exchange interventions to counter disorderly currency swings and speculative yen depreciation.

• Yen weakness — exacerbated by widening interest rate differentials between Japan and the US — inflates import expenditures and adds to headline inflation; while a direct currency intervention might provide temporary relief for the yen, it cannot ensure a sustainable long-term trend reversal.

🛢️ Commodities and Precious Metals

• Crude oil futures are registering modest declines: the international benchmark Brent crude is retreating below $110 per barrel, while US WTI crude is hovering around the $100 per barrel mark.

• Precious metals are also exhibiting a mild cooling in risk appetite: spot gold is easing marginally, remaining in close proximity to the $4,000 per ounce threshold.

• Silver is shedding approximately 1.4%, currently testing the key $53 per ounce technical support zone.

🪙 Cryptocurrencies

• The start of the trading day is marked by profit-taking across digital assets: Bitcoin has slipped below the $80,000 psychological threshold.

• Ethereum is posting a minor decline of roughly 0.2%, holding ground at the $2,300 support level.