Markets Today: Bitcoin Hits 3-Month Lows, Gold Eyes Biggest Weekly Gain in 5 Years on US Lender Concerns. FTSE 100 Finds Support

[Redator]

Asia Market Wrap - Lending Concerns Drag Global Equities Lower

Most Read: Silver (XAG/USD) Technical Outlook: Silver Price Consolidates Ahead of Next Move. Where to Next?

Global stock markets, particularly the financial sector, fell sharply after concerns about bank loan quality in the US rattled investors.

The source of the worry was the US regional banking sector, which slumped 6% on Thursday. Two smaller banks, Zions Bancorp and Western Alliance Bancorp, disclosed issues related to bad loans and fraud allegations, respectively. Wall Street analysts compared this to the recent failure of the auto lender First Brands, suggesting a broader problem with credit oversight.

This fear spread to Asia, where the main MSCI Asia Pacific Index fell 0.8%. Japanese banks and insurers, including major names like Mizuho and Mitsubishi UFJ, all saw their shares drop by nearly 3%. As stocks fell, investors rushed for safety, pushing money into government bonds and safe havens.

Chinese and Hong Kong stock markets closed sharply lower on Friday, extending steep losses that made it the worst week for the region in months.

The blue-chip CSI 300 Index in mainland China fell 2.3% for the day, and the Shanghai Composite Index lost 2%. Hong Kong's benchmark Hang Seng Index dropped 2.5%.

The CSI 300 and the Hang Seng recorded their biggest weekly losses since early April, when the initial threats of US President Donald Trump's massive tariffs first shocked global financial markets.

Meanwhile, the head of the Bank of Japan (BOJ), Ueda, suggested the bank is still ready to raise interest rates soon if the economic outlook improves.

Also, political uncertainty continues in Japan, with the ruling party's efforts to form a new coalition remaining undecided ahead of the prime ministerial vote.

European Session - Weekly Gains in Danger as European Stocks Slide

European stock markets dropped sharply on Friday, on track for their biggest weekly loss in six weeks, as fears about the financial health of US regional banks spread to lenders across the continent.

The main STOXX 600 index for Europe fell by 1.5%. The banking sector was hit hardest, sliding 2.4%, with major banks like Deutsche Bank, Barclays, and BNP Paribas all seeing their shares fall.

This panic originated on Wall Street and continued in the Asian session.

Separately, the share price of Danish drugmaker Novo Nordisk fell 4.6% after US President Donald Trump announced that the price of their popular weight-loss drug would be lowered following swift negotiations.

Meanwhile, shares in Spanish bank BBVA jumped 7% after its massive hostile takeover bid for a rival, Sabadell (down 7%), failed to win shareholder support. BBVA immediately announced it would resume rewarding its own shareholders instead.

On the FX front, the US dollar continued to weaken on Friday and is headed for its biggest weekly drop in almost three months.The overall dollar index fell slightly by 0.1%, putting it on track for a significant weekly loss.

This decline is largely blamed on the extended US government shutdown, which has stopped the release of key economic data, making investors nervous.

The Japanese yen gained 0.2% against the dollar, momentarily strengthening past the key 150/USD level for the first time in nearly two weeks. This gain comes as Japan's parliament scheduled a vote for the next Prime Minister on October 21st, per Reuters.

Both the euro (up 0.2%) and the British pound (sterling) (up 0.1%) also made small gains against the weaker dollar.

Bitcoin's price dropped sharply on Friday, hitting its lowest level since early July. Market participants appear to be trimming exposure due to mounting concerns around tighter regulatory scrutiny.

Currency Power Balance

zoom_out_map

Source: OANDA Labs

Oil prices dropped on Friday and are set for a weekly loss of nearly 3%, driven by worries about future supply and demand.

The small decline today was triggered by news that US President Donald Trump and Russian President Vladimir Putin plan to meet in Hungary soon to discuss ending the war in Ukraine. This meeting raises speculation that a peace deal could eventually ease sanctions on Russian oil, which would then add to the global supply.

This is a concern because the week's price drop was already fueled by a recent warning from the International Energy Agency (IEA), which projected a massive supply surplus (too much oil) in 2026. Both Brent crude and US WTI futures fell by about 0.26%, extending the bearish pressure on the market.

Gold prices soared to yet another record high on Friday, climbing above the $4,300 per ounce level, putting the metal on track for its biggest weekly gain in over five years.

The rush into this "safe-haven" asset was driven by a perfect storm of global uncertainty. Rate cuts bets increased as renewed fears about the stability of the US financial system.

For more on the movement of Gold prices, read Gold's (XAU/USD) Bull Run Just Getting Started? A Look at What History Says

Economic Calendar and Final Thoughts

The most important issue for financial markets right now is the unstable relationship between the US and China, particularly ahead of two critical dates.

Presidents Trump and Xi are scheduled to meet around October 29-31 at the APEC summit in Korea, just before the November 10th deadline when US tariffs on Chinese goods are set to jump significantly if no agreement is reached.

Markets are also now watching the US banking sector as concerns were raised around lending practices. These developments are driving overall market sentiment at present.

We have more Central Bank speakers on the agenda today as well as US building permits and housing starts data.

zoom_out_map

For all market-moving economic releases and events, see the MarketPulse Economic Calendar. (click to enlarge)

Chart of the Day - FTSE 100 Index

From a technical standpoint, the FTSE 100 has broken below the 100 and 200-day MA but has found support at the 9285 handle.

Price has bounced at this level but whether this is sustainable or not remains to be seen.

The period-14 RSI has broken below into oversold territory. A move back above the 30 level may be a sign that a recovery may be in the offing.

Immediate resistance is provided by the 200-day MA resting at 9330. Beyond that we have the 9357 handle before the 100-day MA at 9424.

If markets can break below the 9285 handle we may revisit support at the 9223 or potential the 9180 handle.

FTSE 100 Index Daily Chart, October 17. 2025

zoom_out_map

Source: TradingView.com (click to enlarge)

Follow Zain on Twitter/X for Additional Market News and Insights @zvawda

Opinions are the authors'; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. The provided publication is for informational and educational purposes only.
If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please refer to the MarketPulse Terms of Use.
Visit https://www.marketpulse.com/ to find out more about the beat of the global markets.
© 2025 OANDA Business Information & Services Inc.