Nikkei Snaps 3-Day Win Streak as Markets Eye FOMC Minutes
As of 2026-10-07 17:00 SGT
Key points
- Nikkei 225 snapped a three-session winning streak, closing down 648 points (-0.92%) at 70,036 as profit-taking in semiconductors outweighed Wall Street's overnight record close
- USD/JPY is little changed at 158.18 (+0.06%), holding a tight range after dipping toward the previous session's low of 157.84 in London trade
- The S&P 500 closed at a fresh record overnight, but the 10-year Treasury yield remains elevated as traders brace for tonight's FOMC minutes
- Oil is firm on Houthi attacks on Saudi Arabia and Hormuz Strait tensions, with crude flows through Hormuz reported near 76% of pre-conflict levels
- Hang Seng closed up 0.38% at 24,130, outperforming the Nikkei
Market snapshot
| Instrument | Level | Change |
|---|---|---|
| USD/JPY | 158.18 | +0.06% |
| EUR/USD | 1.1201 | -0.55% |
| Nikkei 225 (close) | 70,036 | -0.92% |
| Hang Seng (close) | 24,130 | +0.38% |
| Dow futures | 51,781 | -0.07% |
| S&P 500 futures | 7,875.75 | +0.02% |
| Nasdaq 100 futures | 31,420 | -0.20% |
| Gold futures | 4,152.00 | -0.84% |
| WTI crude | 89.48 | +0.04% |
| Bitcoin | 83,954 | -1.86% |
| US 10-yr yield | 5.269% | -4.2bp |
Foreign exchange — Range-bound ahead of catalysts
USD/JPY is trading at 158.18, up a marginal 0.06% on the day after dipping toward the previous session's low of 157.84 in London hours before recovering back above 158. EUR/USD is down 0.55% at 1.1201 as French fiscal jitters keep weighing on the single currency, within the prior session's 1.1266-1.1186 range. How US rates react to tonight's FOMC minutes should decide whether USD/JPY holds its 158 pivot heading into the NY session.
Equities — Mixed across Asia
Tokyo snapped a three-day winning streak, with the Nikkei 225 down 0.92% to 70,036 as profit-taking in chipmakers outweighed the overnight record close on Wall Street; TOPIX touched a fresh intraday high before fading into the close. Hong Kong's Hang Seng held up better, up 0.38% at 24,130. Into the NY open, futures (Dow -0.07%, S&P +0.02%, Nasdaq 100 -0.20%) point to a flat-to-mixed start as traders await the FOMC minutes.
Macro — All eyes on tonight's FOMC minutes
The S&P 500 closed at a fresh record in the prior session, yet the 10-year Treasury yield remains near multi-decade highs as traders brace for tonight's FOMC minutes. The US August trade deficit widened to $105.6 billion, the widest since just before last year's tariffs took effect. In Europe, EUR/USD has slid to a 17-month low against the dollar this week as French fiscal fears persist. Tonight's FOMC minutes and Thursday's jobless claims should set the tone for yields heading into the NY session.
Commodities — Oil firm, gold soft
Gold futures are down 0.84% at $4,152.00, approaching the previous session's low of $4,130.70. WTI crude is little changed at $89.48, with oil staying firm on concerns over Houthi attacks on Saudi Arabia and vulnerability in oil exports through the Strait of Hormuz. Saudi Aramco is reported to have cut its November official selling price by $5 a barrel, an unusually large discount seen as a response to competition from US crude. With Hormuz risk still in play, oil's reaction heading into the NY session will hinge as much on Middle East headlines as on tonight's FOMC minutes.
Geopolitics — Middle East risks persist
Houthi attacks on Saudi Arabia and renewed tanker-attack risk in the Strait of Hormuz continue to underpin oil prices; reports suggest Hormuz crude flows have recovered to around 76% of pre-conflict levels, though diesel shortages are reported to persist. Iran is said to be awaiting a US response on a Hormuz-related proposal even as oil prices climb again. President Trump said he expects to speak with President Putin "very soon" regarding a plague-related death in Siberia. Heading into the NY session, Middle East headline risk remains the key swing factor for oil and safe-haven flows.
Upcoming events
| Time (SGT) | Region | Event | Focus |
|---|---|---|---|
| 10/08 01:00 | US | President Trump Speaks | Watch for any remarks on Middle East developments or trade policy |
| 10/08 02:00 | US | FOMC Meeting Minutes | Markets will parse the rationale behind September's hike and the pace of further tightening |
| 10/08 16:30 | US | FOMC Member Waller Speaks | Gauge the tone relative to the latest policy stance |
| 10/08 20:15 | UK | BOE Gov Bailey Speaks | Watch for policy signals amid UK gilt market pressure |
| 10/08 20:30 | US | Unemployment Claims (forecast 200K) | A read on labor market resilience |
| 10/09 20:30 | CA | Employment Change (forecast 6.3K) | Key input for CAD direction |