Risk-off session: What's going on in markets?

[Redator]

Translating each and every move in markets into concrete headlines or themes can be chaotic.

Sometimes, the Market moves in anticipation of news before reversing course as the news land.

Sometimes, Markets overcome negative headlines in a brighter future outlook.

And sometimes, the Market just throws the towel for no particular reasons.

Today's session seems to be the case.

There is always a possibility of things happening behind the scenes and the public learning the true cause of a move later, but for now that does not seem to be the case.

(FYI, US President Trump is speaking with Mark Carney live here)

Uncertainty from a more prolonged US Government shutdown could be starting to influence flows, as consequences could start to hit the economy more seriously as things get dragged for longer.

US Equities opened higher like they usually do since June, but they consequently got met with sharp selling flows which translated into some steep US treasury buying.

These are Risk-Off flows – Positions are closing and volumes are starting to rise as the mid-session bell rings but there seems to be some kind of continuation going on.

Nonetheless, with Gold also reverting from its huge rally, it isn't the typical Risk-off Market.

Let's look at a few Market reactions:

Read More:

• USDCAD steadies as Carney-Trump meeting boosts North American currencies
• RBNZ Preview: Why a 50bps Cut is on the Table

The broad Market picture

Cross-Asset global picture, 30M Charts – October 7, 2025 – Source: TradingView

An unusual picture for this year: Gold, Stocks and Bitcoin are all going down while Bonds are rallying strongly.

Look at the daily highs and lows to spot any reversal of today's action or further continuation breakouts.

Upside & Downside levels to watch:

Gold – $4,000 & $3,900

S&P 500 – 6,765 & below 6,700

10Y US Bonds – Above 113.000 & below 112.000 (or in Yields 4.18% / 4.10%)

US Dollar (DXY) – 98.60 & a 98.00

So is this an opportunity or a trap?

Risk-assets are at their all-time highs and Metals are also there.

In this environment, joining a strong trend after a correction can be a good dip-buying opportunity.

On the other side, patience can also be a virtue:

• Either participants come back to retake new highs, which would cancel any technical fears
• Or participants decide to take more profits, generating downside opportunities and a further correction for longer-term investment at better prices.

What is the best thing to do in any case?

Respect your risk and trading/investing system:

Participating in volatility can come with higher potential returns but also incurs higher chances of a bias/position getting stopped out.

Take a step back and take your decisions by looking back if the opportunity is worth the input.

Plan things out and attempt to place levels that trigger particular decision-making on your part.

Safe Trades!

Follow Elior on Twitter/X for Additional Market News, interactions and Insights @EliorManier

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