(The opinions expressed here are those of the author, a

columnist for Reuters.)

By Mike Dolan

LONDON, 9 Oct (Reuters) - What matters in U.S. and

global markets today

By Mike Dolan, Editor-At-Large, Finance and Markets

World stocks and gold paused their latest steep rally on

Thursday as a series of warnings about excessive stock

valuations and overly loose policy settings reverberated through

global markets.

International Monetary Fund boss Kristalina Georgieva warned

about risk to the world economy from potentially large

corrections in lofty stock markets, while she also noted that

fiscal policies were too lax worldwide, adding "don't get too

comfortable." The caution followed the Bank of England's red

flag earlier on Wednesday about the risk of a sharp reversal if

investor moods soured on doubts about AI or Fed independence.

And JPMorgan chief Jamie Dimon on Thursday added his voice to

warnings of a risk of significant pullback in the U.S. stock

market over the next year or two. "I am far more worried about

that than others," he told the BBC.

Despite the trepidation, soundings on the AI frenzy ahead of

this month's corporate earnings season remained upbeat and the

world's largest contract chipmaker TSMC reported another

forecast-beating, AI-driven jump in annual revenue of 30%.

China's markets also returned in buoyant form from the Golden

Week break and played catch-up to the global stock gains in

their absence. Chinese chipmakers surged on more pressure in

Washington for broader bans on exports of chip equipment to

China and rare earth indexes jumped as Beijing tightened export

controls of the strategic minerals.

Europe held on to Wednesday's recovery in French markets as

President Emmanuel Macron batted away speculation of another

snap election and said he would appoint a new prime minister

within 48 hours to end the latest political hiatus.

Back on Wall Street, there was some cooling of the week's main

moves today after fresh closing highs for the main stock indexes

on Wednesday. Gold stalled at new records after surging past

$4,000 earlier in the week. With official data still thin on the

ground amid the U.S. government shutdown, investors took their

cue from Fed minutes that nodded to further easing even as

inflation worries linger. Stock futures were flat and U.S.

Treasury yields nudged up a bit, however, after a mixed 10-year

note auction late Wednesday and ahead of the long-bond sale

later today. The dollar held much of the week's gains, with the

yen sliding through 153 for the first time since February as

Japan's next likely new prime minister Sanae Takaichi pledged to

reassert government sway over the Bank of Japan.

* AI-led megacaps and chips were the clear leaders again on

Wednesday as the Nasdaq outperformed and the S&P 500 set another

record. That mix of stretched growth leadership, a data vacuum

and heavy deficit financing has stoked renewed chatter about

froth across assets, with some investors leaning on the coming

earnings season and Fed cuts to validate elevated multiples.

Breadth stayed constructive under the surface, but sector

laggards in energy, staples and homebuilders hinted at pockets

of strain as mortgage demand slid despite lower rates.

* Oil prices were little changed as investors

weighed a

ceasefire deal in Gaza that could ease geopolitical tensions in

the Middle East against stalled peace talks in Ukraine that

could sustain sanctions on Russia and curb its exports. Brent

crude futures nudged up 13 cents to $66.38 and U.S. was up 11

cents to $62.66.

* The surge in gold prices above $4,000 per ounce is

spilling over

into other precious metals on fears the Trump administration's

unorthodox economic policies will see a debasement of the U.S.

currency while other currencies are undermined by lax fiscal

policies around the globe. Silver, platinum and palladium are

enjoying upsized gains for the year as investors fret about a

whole host of geopolitical and economic uncertainties.

* UK assets remain in the crosshairs of global rates

volatility,

and the debate around the BoE's balance-sheet strategy is

intensifying again. The case for easing off active gilt sales in

favor of passive runoff is back on the table as a way to nurse a

fragile market, even as BoE speakers keep the focus on price

stability and the transmission of tight policy. With gilts

tightly linked to U.S. Treasury moves, any further swing in

dollar rates will matter as much as Threadneedle Street's own

guidance.

In today's column, I look at how estimates of a record $600

trillion global wealth pile can only hold if a genuine

productivity boom materializes.

Today's Market Minute

* Oil prices dipped on Thursday as geopolitical tensions eased

on news that

* French President Emmanuel Macron will appoint a new prime

minister in the next 48 hours, his office said on Wednesday,

adding that a majority of lawmakers

* A pledge by Japan's next likely prime minister to reassert

government sway over the central bank has fanned worries about

political interference in monetary policy, however,

* The amount of U.S. Treasuries held at the New York Fed on

behalf of global central banks has slumped to its lowest in over

a decade, writes ROI markets columnist Jamie McGeever, casting

renewed doubt on

* China's longstanding dominance of clean energy

manufacturing is translating into a behemoth export business,

with close to $1 trillion of related goods shipped globally

since 2018.

Chart of the day

U.S. President Donald Trump's net public approval ratings,

the difference between approval and disapprovals, have been

falling since the inuguration and the overall rating is a

negative -18% - the latest Reuters/IPSOS opinion polls show.

Despite the GDP and stock market recoveries since the Spring,

the economy remains a drag on his popularity and Trump's

performance in that category gets a negative -21% - roughly

where it was at midyear.

Today's events to watch

* Federal Reserve chair Jerome Powell, Fed board member

Michelle Bowman, St. Louis Fed President Alberto Musalem,

Minneapolis Fed chief Neel Kashkari and Fed Board Governor

Michael Barr all speak; European Central Bank chief economist

Philip Lane speaks

* Euro group meeting in Luxembourg, with ECB President

Christine Lagarde and ECB board member Piero Cipollone

* U.S. Treasury sells $22 billion of 30-year bonds

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Opinions expressed are those of the author. They do not reflect

the views of Reuters News, which, under the Trust Principles, is

committed to integrity, independence, and freedom from bias.

(By Mike Dolan; Editing by Philippa Fletcher )