Global Markets Open Mixed as Tech Selloff ,Middle East Risks Weigh
The possibility of renewed tensions between the United States and Iran following November’s midterm elections has also weighed on appetite for risk.
Investors are closely watching the Federal Reserve’s monetary policy announcement this week. The central bank is widely expected to leave interest rates unchanged, making its forward guidance particularly important for assessing its policy direction amid persistent inflationary pressures.
US economic growth figures, personal consumption data and earnings reports from Amazon, Microsoft and Alphabet are also expected to shape market activity in the coming days.
Meanwhile, US President Donald Trump is reportedly considering using “the mother of all bombs” against Iran. “It’s not nuclear at all, this is just an extremely large bomb — it’s like a tiny nuclear bomb,” the president said in an interview last week.
Brent crude futures for December delivery declined 1.9% to $114.50 per barrel after reports that Qatari mediators had traveled to Tehran to facilitate negotiations with Washington.
The yield on the 10-year US Treasury fell three basis points to 4.97%, reflecting increased demand for safe-haven investments.
The US dollar index slipped 0.2% to 101.7 as bond yields declined, while gold prices rose 0.5% to $4,015 per ounce, supported by the weaker dollar.
In Brazil, Luiz Inacio Lula da Silva won the second round of the presidential election, according to unofficial results. The US dollar fell 0.1% against the Brazilian real to 4.9780.
The unexpected election outcome also triggered a sharp decline in an exchange-traded fund tracking Brazilian stocks and traded in Tokyo, which dropped approximately 15%.
On Wall Street, US stocks closed lower on Oct. 23 as selling pressure on technology shares continued amid concerns about whether investments in artificial intelligence would generate sufficient returns. The weakness also spread to other sectors.
Telecommunications stocks declined following reports that SpaceX was negotiating with US cellular operators to develop a nationwide wireless network.
Fears of heightened competition pushed AT&T shares down 7.96%, while Verizon fell 1.18% and T-Mobile dropped 7.71%. SpaceX shares, by contrast, gained 1.89%.
American Express shares lost 3.62% after the company decided to cut around 5% of its global workforce, despite reporting higher revenue and profit for the third quarter.
Economic indicators offered a mixed picture. The University of Michigan’s consumer sentiment index was revised upward to 48 for October but remained at its lowest level in five months.
Meanwhile, the US manufacturing Purchasing Managers’ Index (PMI) climbed to 56, its highest reading in 53 months and above expectations.
On Oct. 23, the Dow Jones Industrial Average declined 1.23%, the S&P 500 fell 0.52% and the Nasdaq Composite slipped 0.21%. US stock indexes subsequently opened Monday’s session higher.
European markets also finished lower on Oct. 23, pressured by continuing protests in France and rising oil prices.
France’s 10-year government bond yield climbed to 5.07%, its highest level since 2002.
Moody’s said France’s “Aa3” credit rating benefits from the country’s wealthy, diversified economy and strong public institutions. However, the agency highlighted political fragmentation, instability, a heavy debt burden and deteriorating debt-servicing indicators as continuing challenges.
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