Global Markets Today, October 5, 2026: Asia Advances As Fed Fears Ease, Pointing To Positive Start For Indian Equities

Mumbai, October 5: Indian equity benchmarks are likely to open higher on Monday, with global risk sentiment improving after softer-than-expected US jobs data reduced expectations of another Federal Reserve interest-rate hike this month. Asian equities advanced, US and European stock futures traded in positive territory, while crude oil prices eased from recent highs, offering some relief to Indian markets after their longest weekly losing streak in 25 years. 

The benchmark index Nifty 50 had closed at 22,421.95 on Thursday, while the Sensex ended at 71,909.70. Indian markets were shut on Friday for a public holiday. 

Asian Markets 

Asian markets traded mostly higher on Monday, taking cues from gains on Wall Street and easing concerns over an aggressive Fed tightening cycle. Japan’s Nikkei 225 rose 2.5%, while Australia’s benchmark index gained 0.2%. The broader MSCI index of Asia-Pacific shares outside Japan also edged higher. Markets in mainland China and South Korea were closed for holidays. 

The gains came after data released on Friday showed that US employers added only 29,000 jobs in September, sharply below the 90,000 expected by economists. Payrolls for the previous two months were also revised lower. As a result, markets are now pricing in only a 22% probability of a Fed rate hike in October, down from 64% a week earlier. 

US, European Futures 

US stock futures pointed to a positive start, with Nasdaq futures up 0.13% and S&P 500 futures flatlining. In Europe, with EUROSTOXX 50 futures were up 0.3% and FTSE futures flatlined. 

The softer jobs data has helped ease pressure on global bond markets, although US Treasury yields remain elevated. The benchmark 10-year US Treasury yield slipped to around 5.26% on Monday after hitting multi-year highs last week. 

Oil Prices 

Crude oil prices eased on Monday as rising Middle Eastern exports and a planned release of 100 million barrels of crude and diesel from G7 emergency reserves helped reduce immediate supply concerns. 

Brent crude futures were down 0.7% at $101.6 a barrel, while US West Texas Intermediate crude fell 1.1% to $90. However, geopolitical risks remain elevated amid continued attacks around the Gulf region, limiting the downside in oil prices. 

For Indian equities, the combination of stronger Asian markets, positive US and European futures, softer oil prices and reduced Fed-hike expectations points to a firmer opening. However, elevated crude prices, high global bond yields and continued foreign investor selling could limit gains and keep volatility high. 

Source

•  Exchanges