U.S. index futures edged down slightly in pre-market trading on Monday, with investors focused on international tensions, the Federal Reserve’s meeting minutes, the Consumer Price Index report, and the start of the corporate earnings season this week.

At 05:03 AM, Dow Jones futures (DOWI:DJI) fell 176 points or 0.41%. S&P 500 futures lost 0.53%, and Nasdaq-100 futures slipped 0.67%. The 10-year Treasury yield stood at 4.01%.

In commodities, oil prices rebounded from earlier losses as markets awaited possible retaliation from Israel against Iran over a missile attack, despite President Biden’s resistance to strike Iranian oil fields. Middle East tensions and concerns about Chinese demand continue to affect the market. Goldman Sachs predicts Brent could hit $90 if Iranian supply is disrupted.

West Texas Intermediate crude for November rose 1.96% to $75.84 per barrel, while Brent for November gained 1.64% to $79.33 per barrel. Last week, Brent jumped 8% and WTI surged 9.1%.

China’s new stimulus package boosted commodity prices, including iron ore, copper, and zinc. Iron ore prices rose in Singapore following two weeks of sharp gains. China will hold a press conference on Tuesday, led by the National Development and Reform Commission, to discuss stimulus policies for economic growth. Economists and investors await new measures, such as increased public spending. Expectations are high that Beijing will implement a significant fiscal package to stimulate the market after recent signs of an economic slowdown.

Gold (PM:XAUUSD) rose 0.09% with Middle East tensions, after earlier falling due to stronger-than-expected U.S. job data, reducing the chances of Federal Reserve rate cuts. Gold traded around $2,652.24 per ounce, pressured by rising U.S. Treasury yields.

In today’s U.S. economic agenda, notable events include speeches from Fed Governor Michelle Bowman at 11:00 AM and St. Louis Fed President Alberto Musalem at 6:30 PM. At 3:00 PM, the September consumer credit report will be released, with forecasts of $12 billion compared to $25.5 billion in the previous month.

Asia-Pacific markets rose on Monday, led by Japan’s Nikkei 225 with a 1.8% increase, driven by financial and consumer stocks. South Korea’s Kospi advanced 1.58%, while Australia’s S&P/ASX 200 gained 0.68%, led by lithium stocks. Hong Kong’s Hang Seng Index rose 1.32% in late trading, while mainland Chinese markets remained closed for the Golden Week holiday.

The Bank of Japan reported that the economy is recovering, with improvements varying across regions. In its quarterly report, the bank positively revised two of the nine regions, citing increased consumption in Tokyo and other areas. Tourism and rising wages boosted spending in Hokkaido and Akita.

Nintendo shares rose after a sovereign fund executive from Saudi Arabia expressed interest in increasing investments in Japanese gaming companies, including Nintendo. The Saudi government is diversifying its economy, investing $38 billion in the video game sector to become a global industry hub.

Tokyo Metro set a price range of 1,100 to 1,200 yen per share for its IPO, aiming to raise 349 billion yen, or $2.35 billion, the largest in Japan in six years. The final price will be set on October 15, with a listing on the Tokyo Stock Exchange scheduled for October 23.

In China, property sales surged during the National Day holiday, driven by new stimulus measures in the real estate sector. Policies such as reduced down payments and mortgage rates boosted house visits by more than 50% year-on-year. Over 50 cities have implemented policies to stimulate the sector. In Shenzhen, both transactions and visitor numbers rose significantly.

The central banks of South Korea, New Zealand, and India are expected to announce interest rate decisions this week.

European markets opened higher on Monday, buoyed by gains in Asia and the U.S., but soon pared those initial gains, with only the banking and household goods sectors posting slight increases. Investors await U.K. retail sales and the Halifax House Price Index data.

Wage growth in the U.K. slowed in September, hitting its lowest level since February 2021, reflecting a cooling labor market. REC and KPMG reported a decline in hiring, although less severe than in August, and noted that employers are hesitant to raise wages due to falling demand. Fiscal policy uncertainty may influence future Bank of England rate cut decisions, impacting investments and economic growth.

According to François Villeroy de Galhau, head of the French Central Bank, the European Central Bank (ECB) is likely to reduce interest rates on October 17 due to weak economic growth. With inflation below the 2% target, the ECB has already cut rates twice this year, and markets expect further cuts in October and December.

Applied Nutrition, a sports nutrition and wellness brand, plans to go public on the London Stock Exchange in October. The company, founded 10 years ago, is targeting a free float of at least 25% and aims for inclusion in the FTSE 100 index. In 2023, it generated £86.15 million in revenue, with an adjusted profit of £25.99 million.

U.S. stocks rose on Friday after stronger-than-expected job reports suggested a healthy economy. In September, 254,000 jobs were created, surpassing the forecast of 150,000. The S&P 500 gained 0.9%, the Nasdaq Composite rose 1.22%, and the Dow Jones closed at a record 42,352.75 after climbing 0.81%.

Quarterly reports from Duckhorn Portfolio  (NYSE:NAPA) are anticipated.