French borrowing costs surged past Italy’s for the first time in the euro era, underscoring investor unease as President Emmanuel Macron appointed former Defense Minister Sebastien Lecornu as his fifth prime minister in under two years. Lecornu’s first day in office was marked by large-scale protests across France, highlighting the political challenges ahead.
In the U.S., the Labor Department delivered a sharp revision to employment data, cutting 911,000 jobs from the 12 months ending in March 2025. The downgrade points to a far weaker labor market than previously thought, bolstering expectations of Federal Reserve easing.
China added to the growth concerns with August CPI falling 0.4% year-on-year, a deeper drop than the expected -0.2%, signaling persistent deflationary pressures.
Meanwhile, in U.S. legal developments, a judge ruled it is illegal for Donald Trump to dismiss Fed Governor Lisa Cook, though the Justice Department is expected to appeal.
Markets in Asia stayed buoyant. Hong Kong’s Hang Seng Index jumped 1.8%, led by gains in Alibaba, Tencent, Baidu and JD.com, as optimism over a China tech rally grew. In Taiwan, TSMC posted a 34% surge in August revenue, reflecting soaring demand for AI chips.
In the U.S., Oracle shares spiked 30% after the company issued a stronger-than-expected revenue forecast, adding momentum to the broader AI-driven rally in tech.