finance PM market analysis — 2026-10-28

Risk appetite improved across Asian and U.S. equities on Wednesday, with technology shares and optimism around upcoming corporate earnings providing the main support. That lift sat alongside a more cautious backdrop in energy and fixed income markets, where traders were reluctant to commit to a single direction ahead of the Federal Reserve’s policy decision.

Oil stayed unsettled as investors weighed diplomatic developments against ongoing conflict-related threats to supply, a reminder that energy remains a swing factor for the inflation outlook. Treasury yields, by contrast, held relatively steady, with participants largely holding positions until the Fed’s guidance clarifies the path ahead.

The Bank of Canada’s decision to tighten policy, paired with a cautious signal on further moves, illustrated the wider difficulty central banks face when energy costs keep pushing against inflation targets. That divergence in central-bank posture is likely to keep currency and cross-asset moves in focus.

With equities firm but energy and policy signals still unsettled, the setup into the Fed statement looks finely balanced rather than one-directional.