Global markets recorded a broadly weaker session on October 7, with U.S. and European equities declining and Tel Aviv posting sharp losses across its major benchmarks. Asian markets were mixed, with gains in India and relatively limited movement in Australia offset by declines in Japan, Hong Kong and South Korea. China’s Shanghai and Shenzhen Stock Exchanges were closed for National Day.

America: U.S. Equities Decline as Small Caps Underperform

U.S. stocks ended October 7 lower across the major benchmarks. The S&P 500 fell 0.22% to 7,801.77, while the Nasdaq declined 0.22% to 27,538.69. The Dow Jones Industrial Average dropped 0.66% to 51,179.87, and the Russell 2000 fell 1.31% to 2,793.20, marking a steeper decline among smaller companies.

Outside the United States, Brazil’s IBOVESPA fell 0.74% to 204,302.33, while Canada’s S&P/TSX Composite declined 1.70% to 35,041.86. The U.S. Dollar Index was nearly unchanged, rising 0.01% to 102.25. The VIX closed at 15.08, up 0.47%.

Europe: Major Benchmarks Record Broad Losses

European equities declined broadly on October 7. The FTSE 100 fell 0.79% to 10,458.50, while France’s CAC 40 declined 1.22% to 7,769.21. Germany’s DAX dropped 1.35% to 25,104.36, and the EURO STOXX 50 fell 1.47% to 6,180.29.

The broader European market also weakened. The Euronext 100 declined 1.39% to 1,857.43, while MSCI Europe fell 1.48% to 2,688.94. Currency indexes also moved lower, with the British Pound Index declining 0.43% to 132.13 and the Euro Index falling 0.56% to 111.95.

Asia: Regional Markets Diverge as Korea and Japan Retreat

Asian markets delivered mixed results on October 7. India’s S&P BSE SENSEX gained 0.35% to 73,322.84, while Australia’s S&P/ASX 200 edged down 0.09% to 8,727.70. Japan’s Nikkei 225 fell 0.92% to 70,035.71, Hong Kong’s Hang Seng declined 0.62% to 24,130.50, and South Korea’s KOSPI Composite Index dropped 1.98% to 6,803.90.

Currency markets were mixed. The Australian Dollar Currency Index rose 0.15% to 69.82, while the Yen Index fell 0.13% to 63.23. The Shanghai and Shenzhen Stock Exchanges were closed on October 7 for National Day, so the supplied Shanghai Composite figure is not treated as October 7 trading performance.

Tel Aviv: Broad-Based Selling Hits Israeli Benchmarks

Tel Aviv markets came under significant pressure on October 7. The TA-35 fell 2.44% to 4,096.45, while the TA-90 declined 2.06% to 3,442.28. The TA-125 dropped 2.38% to 3,932.42, and the TA-SME60 fell 2.66% to 1,219.26.

Other major benchmarks also recorded losses. The TA 90 and Banks index declined 1.84% to 3,707.69, the TA-200 fell 2.25% to 3,687.05, and the TA Sector-Balance index lost 2.29% to 4,422.74. The TA-20 declined 2.59% to 3,926.61. Market breadth was notably weak, with 31 securities advancing against 5 declining on the TA-35, while the TA-90 recorded 13 advancing securities and 77 declining securities.

Outlook for October 8: Macro Data, Policy Expectations and Regional Risks in Focus

Markets heading into October 8 will remain sensitive to expectations for central-bank policy, incoming inflation and economic activity data, corporate earnings and developments in global bond and currency markets. Investors will also assess changes in risk appetite and positioning as the fourth quarter progresses.

Geopolitical developments and changes in monetary-policy expectations remain potential sources of volatility. Market participants will also monitor liquidity and regional trading conditions. In the Americas, Peru’s Lima Stock Exchange will be closed on October 8 for the Battle of Angamos, reducing trading activity in that market during the session.