The NAHB/Wells Fargo Housing Market Index (HMI), which tracks US homebuilder confidence in the market for newly built single-family homes, fell for a second consecutive month to 29 in October 2026, the lowest since June 2012, from 32 in September and below forecasts of 32. Current sales conditions fell two points to 33, also a 14-year low. Sales expectations in the next six months dropped five points to 32, the lowest since November 2022 while traffic of prospective buyers declined five points to 18. Also, 43% of builders cut prices in October, the highest share during the 2020-2026 period. The average price cut remained at 6% for the seventh consecutive month. “Housing remains squeezed by supply-side constraints and significant affordability challenges. Demand persists, but higher mortgage rates, elevated construction costs and weaker consumer confidence are keeping more buyers on the sidelines”, according to Robert Dietz, NAHB chief economist.

US stocks were mixed as a rebound in heavyweight AI infrastructure stocks offset muted movement in broader sectors. Tech gains lifted the S&P 500 by 0.5% and the Nasdaq 100 by 1.2%, while the Dow inched below the flatline. The advance contrasted with tech weakness last week, when underwhelming financial results from Anthropic and signs of debt stress among cloud providers, especially CoreWeave, dented demand for speculative positions in the sector. Dip buyers lifted AMD, Micron, Lam Research, and SanDisk by around 5% each. Also, CoreWeave rebounded to an 8% gain. The credit stress in the sector had also softened concerns that the US Treasury would be further crowded out of capital by primary dealers, lowering longer-term yields. Banks were muted following their earnings week, while Meta and Tesla inched down ahead of their earnings results this week.

Crude oil held near $101 a barrel on Monday, close to a four-week high after surging 10% last week, as renewed fighting across the Middle East heightened concerns over supply disruptions. Reports of a Saudi helicopter crash near the Yemen border, Houthi attacks on the key export hub of Yanbu and two tankers being struck in the Persian Gulf have cast doubt on the durability of the recovery in regional oil flows. US Energy Secretary Chris Wright said Gulf shipments had recovered to around 80% of pre-conflict levels, although refined-product exports remained constrained. Meanwhile, President Donald Trump said Washington agreed to a diesel export deal with Russia and waived tariffs and sanctions on its energy shipments to support peace talks over Ukraine. However, US lawmakers introduced legislation to block the purchases.

China’s economy grew 4.5% yoy in Q3 2026, accelerating from Q2’s three-year low of 4.3% and beating market expectations of 4.4%. Growth was supported by recent policy easing and resilient exports, particularly of AI-related components, high-tech manufactured goods and electric vehicles. September activity also strengthened, with industrial output and retail sales posting their fastest growth in six months, partly reflecting the boost from the Golden Week holiday period. For the first nine months of 2026, the economy expanded 4.6% from the same period in 2025, within the lower end of the government’s full-year growth target of 4.5%-5.0%. The National Bureau of Statistics said the domestic economy continued to develop so far this year, with key indicators improving and progress in high-quality growth. However, it warned that the volatile international environment and persistently weak domestic demand remain challenges, requiring further efforts to sustain the recovery.

The euro weakened toward $1.12, remaining near multi-month lows as escalating unrest in France heightened concerns over the country’s fiscal outlook, while tensions between Ukraine and the US added to geopolitical uncertainty. Protests across French cities erupted into clashes with police, potentially complicating efforts to implement austerity measures ahead of the 2027 elections and further undermining investor confidence. Meanwhile, Ukrainian President Volodymyr Zelenskyy accused US President Donald Trump of pressuring Kyiv to make concessions to Russia, deepening a growing diplomatic rift. Europe’s rising geopolitical risks, combined with elevated energy costs and concerns over economic growth, are likely to continue weighing on the single currency. On the monetary policy front, both the European Central Bank and the Federal Reserve are expected to keep interest rates unchanged later this month, with markets anticipating potential rate hikes in December.

France’s 10-year OAT yield climbed towards 4.9%, approaching its highest level in more than two decades, as escalating social unrest and persistent political gridlock intensified pressure on the country’s already battered bond market. Mass protests over the rising cost of living and deteriorating school conditions swept across France over the weekend, with violence and looting reported in several cities. The unrest adds to mounting challenges for the government, which is struggling to pass a budget and rein in public debt ahead of next year’s presidential election. Prolonged political uncertainty threatens to keep borrowing costs elevated, further complicating efforts to restore confidence in France’s public finances. French government bonds have been among the hardest hit in a broader global bond selloff driven by renewed inflation concerns, expectations of higher interest rates, and growing worries over government debt levels.