Morning Bid: Political jolts from Tokyo and Paris

Group 1 - The election of Sanae Takaichi as Japan's next Prime Minister has led to a significant surge in the dollar against the yen, surpassing 150 yen, and the Nikkei index rising nearly 5% to over 48,000 [2] - Takaichi's stance against Bank of Japan tightening and support for fiscal stimulus has resulted in record highs for 30-year Japanese government bond yields and the steepest yield curve in a month, as expectations for an October rate hike diminished [2][5] - In France, the resignation of Prime Minister Sebastien Lecornu and his cabinet has created political uncertainty, causing the CAC40 index to drop over 1.5% and the euro to fall below $1.17 [3] Group 2 - U.S. markets are reacting to the ongoing government shutdown and the upcoming earnings season, with stock futures and the dollar rising, while long-term Treasury borrowing rates are also increasing [4] - Fed funds futures indicate a 95% probability of a U.S. interest rate cut in October, with concerns about prolonged government shutdown impacting job losses and consumer confidence [5] - Gold and bitcoin have reached new record highs due to political instability in G7 countries, with gold peaking just above $3,944 and bitcoin exceeding $125,000 for the first time [5]