The capital markets remain volatile, influenced by ongoing geopolitical tensions. Bonds are rallying, equities face pressure, and the U.S. dollar is mostly stronger. Scandinavian currencies are leading declines, down 0.4%-0.55%, while emerging market currencies are mixed. However, a glimmer of optimism came from the Nasdaq, which rose yesterday for the first time in five sessions, providing a boost to Asia-Pacific equities today. Meanwhile, January WTI crude oil was turned back near its 20-day moving average, trading around $68.65 during the European morning.

Asia-Pacific Markets
The minutes from the Reserve Bank of Australia's (RBA) recent meeting offered little new information but highlighted persistent concerns over elevated core inflation. The Australian dollar gained for the second day in a row yesterday, posting a 0.70% increase—the largest since last week's Federal Open Market Committee (FOMC) meeting. It breached $0.6500 for the first time in three sessions, reaching nearly $0.6525 today.
The Japanese yen also showed movement. After forming an outside-down day pattern over the weekend, the dollar traded within its pre-weekend range against the yen yesterday. However, it broke further down today, testing its 20-day moving average.

European Markets
Eurozone data showed a robust current account surplus of €30.5 billion, more than doubling last year's pace. Tomorrow, the region will release reports on negotiated wage settlements and September construction output.
In the UK, October CPI data is due, likely reinforcing expectations that the Bank of England will maintain its current policy stance in December.
The euro is trading slightly weaker, remaining within yesterday’s range, while sterling continues to move within its pre-weekend range.

American Markets
The U.S. has a relatively light economic calendar this week. Scheduled for today are October housing starts and permits. September housing starts were roughly 13% lower than at the end of 2022, reflecting ongoing challenges in the sector.
Canada will report October CPI data today, with the year-over-year headline inflation rate expected to rise for the first time since May, signaling potential policy considerations for the Bank of Canada.