Global Markets Mixed as China Introduces Mortgage Interest Subsidy Policy

The overnight markets saw mixed performances across various asset classes. In the metals market, base metals on the domestic market showed varied results, with SHFE copper rising 0.11% and SHFE aluminum falling 0.46%. In contrast, LME base metals displayed a more uniform trend, with LME copper edging up within 0.1%, while LME nickel fell 1.2%. The precious metals market also witnessed gains, as COMEX gold rose 1.12% and the most-traded SHFE gold contract increased by 0.8%.

On the macro front, China's central government launched a mortgage interest subsidy policy for residential home purchases, effective from October 1, 2026. The policy aims to provide a maximum loan amount of 1 million yuan with an annualized subsidy of 1 percentage point, capped at five years. This marks the first instance of the central government subsidizing interest on commercial personal housing loans.

The US Treasury market continued to face sustained selling pressure, with the 30-year Treasury yield rising for a sixth consecutive trading day to 5.595%, its highest level since 2002. New York Fed President John Williams stated that there is no need for the US Fed to rush into another move after raising rates in September, but emphasized the focus on keeping inflation under control.