The upcoming Autumn Budget presents significant challenges for UK Chancellor Rachel Reeves as she faces pressure to balance voter expectations, fiscal discipline, and market confidence. Reeves must address a multi-billion-pound deficit while adhering to fiscal rules demanding that spending be covered by tax revenue and public debt be reduced over time. Options on the table include unpopular tax hikes, spending cuts, or a combination of both.

Bond traders are preparing for a wave of delayed economic releases that will shape expectations for the US Federal Reserve's next rate move, with the September jobs report set to land Thursday after the government shutdown. Analysts warned that stronger-than-expected labor figures could reduce the odds of a December rate cut and fuel volatility, while managers broadly expect the Fed to maintain an easing bias even if it pauses next month, as officials express uncertainty around the rate outlook.

Dallas US Fed President Lorie Logan has signaled she would oppose a rate cut in December, citing concerns about inflation remaining above the Fed's 2% target. "Until I see convincing evidence that we are headed all the way back to our 2% target, I really do think modestly restrictive policy is appropriate," Logan said at an energy conference.

A potential rare earths agreement between the US and China could be finalized by Thanksgiving, according to US Treasury Secretary Scott Bessent. "I am confident that post our meeting in Korea between the two leaders, President Trump, President Xi, that China will honour their agreements," Bessent said.

Spain's budget deficit is on track to be lower than Germany's next year for the first time in nearly two decades, with Spain's deficit projected to fall to 2.3% of GDP and Germany's to rise to 3.1% in 2026, according to the Bank of Spain and the German Council of Economic Experts. Spain's economic growth is driven by immigration, tourism, and EU funds, while Germany faces infrastructure challenges and higher borrowing.

Dutch central bank governor Olaf Sleijpen has warned that the rapid growth of US dollar-backed stablecoins could pose serious risks to financial stability in Europe. He noted that if these digital tokens are not truly stable, a sudden rush to redeem them could force the sale of large amounts of underlying assets, disrupting markets. Such instability could impact the economy and inflation, potentially requiring intervention from the European Central Bank.

Japan's GDP shrank 1.8% in Q3, marking the first contraction in six quarters, driven by weakened domestic demand and slowing exports. The decline was less severe than expected, as economists had predicted a 2.5% drop.

Global money managers are sounding alarms over the risks associated with increasingly crowded trades in emerging markets. Concerns center on the potential for abrupt reversals in popular positions, such as those in the Brazilian real and AI-linked stocks, should market sentiment shift. Overcrowding could increase volatility and lead to quick unwinding, posing challenges for investors seeking stability in these regions.

Japan's Financial Services Agency is reportedly weighing new regulations that would categorize cryptocurrencies as financial products, making them subject to insider trading rules. The proposed changes aim to increase oversight and align digital assets with existing financial frameworks, with legislation expected to be considered in the next parliamentary session, sources say.