Global markets opened the fourth quarter with pronounced regional divergence on October 1. U.S. equities posted modest gains, European benchmarks declined broadly, and Asian markets that were open delivered mixed results, led by a sharp advance in Japan. Tel Aviv trading was also mixed, with the TA-35 edging higher while several broader and small-cap indices declined.

America: U.S. Equities Hold Steady as Dollar Weakens

U.S. markets ended October 1 with limited moves across the major benchmarks. The S&P 500 rose 0.19% to 7,666.45, while the Dow Jones Industrial Average gained 0.04% to 50,926.56. The Nasdaq also advanced 0.04% to 26,871.60. The Russell 2000 added 0.35% to 2,806.62.

Outside the United States, Brazil’s IBOVESPA increased 0.46% to 187,197.45, while Canada’s S&P/TSX Composite declined 0.23% to 35,154.76. The U.S. Dollar Index fell 0.16% to 101.94. The VIX closed at 16.39, up 0.31%.

Europe: Broad-Based Declines Mark the Start of October

European equities recorded broad declines on October 1. The FTSE 100 fell 1.68% to 10,428.27, while France’s CAC 40 declined 1.62% to 7,835.31. Germany’s DAX dropped 1.03% to 24,939.35, and the EURO STOXX 50 fell 1.49% to 6,175.45.

The broader European benchmarks also weakened. The Euronext 100 declined 1.45% to 1,857.50, while MSCI Europe fell 2.05% to 2,687.79. Currency indexes also moved lower, with the Euro Index down 0.75% to 112.46 and the British Pound Index falling 0.55% to 131.97. The Cyprus Stock Exchange and Ukraine Stock Exchange were closed on October 1 for Independence Day and Defender Day, respectively.

Asia: Japan Surges as Open Markets Diverge

Asian markets that were open on October 1 produced a mixed performance. Japan’s Nikkei 225 jumped 3.30% to 68,956.72, while South Korea’s KOSPI Composite Index gained 1.95% to 6,971.35. India’s S&P BSE SENSEX fell 1.34% to 71,506.40, while the S&P/ASX 200 declined 1.99% to 8,614.40.

Currency indexes were also mixed. The Japanese Yen Index slipped 0.04% to 63.54, while the Australian Dollar Index declined 0.51% to 69.50. The Shanghai and Shenzhen Stock Exchanges and the Hong Kong Stock Exchange were closed on October 1 for National Day, so their supplied index figures are not treated as October 1 trading performance.

Tel Aviv: TA-35 Gains While Broader Benchmarks Retreat

Tel Aviv trading was mixed on October 1. The TA-35 rose 0.34% to 4,218.25, while the TA-90 fell 1.46% to 3,637.45. The TA-125 declined 0.08% to 4,072.30, and the TA-SME60 dropped 2.10% to 1,296.33.

Other benchmarks also weakened. The TA 90 and Banks index fell 0.67% to 3,895.59, the TA-200 declined 1.04% to 3,869.69, and the TA Sector-Balance index lost 0.66% to 4,605.80. The TA-20 gained 0.17% to 4,058.50. On the TA-90, 66 securities declined compared with 23 that advanced.

Outlook for October 2: Regional Closures and Macro Signals in Focus

Trading on October 2 will be affected by several regional market closures. China’s Shanghai and Shenzhen Stock Exchanges will remain closed for National Day, while India’s National Stock Exchange will be closed for Mahatma Gandhi Jayanti. The Tel Aviv Stock Exchange will also be closed for Rejoicing of the Law (Simchat Tora) Eve.

For markets that remain open, investors will monitor central-bank expectations, inflation and economic activity data, currency movements, bond yields and corporate developments as the fourth quarter progresses. Geopolitical developments and changes in monetary-policy expectations remain potential sources of market volatility, while reduced trading activity in several major markets may affect liquidity during the October 2 session.