Global Markets Advance as Tech Stocks Rally, Oil Prices Retreat
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MENAFNUS President Donald Trump described the possibility of military action against Iran as unlikely, reducing geopolitical risk concerns and pushing January Brent crude futures down 1.1% to $91.5 per barrel.
Meanwhile, Federal Reserve officials highlighted persistent pressure from services inflation despite a stable labor market, limited layoffs and continued economic growth. They called for caution ahead of the release of October inflation figures. US consumers' inflation expectations for the short, medium and long term remained unchanged at 3.9%, 3.3% and 3%, respectively.
The yield on the US 10-year Treasury remained steady at 4.87%, while the dollar index traded sideways at 101.6 on Tuesday. Gold prices slipped 0.6% to $4,114 per ounce amid expectations that monetary policy could become tighter.
Wall Street ended Monday higher, with technology companies leading the gains. Apple shares advanced 2.4%, Microsoft climbed 2.8%, Alphabet added around 1%, Amazon gained 3%, while Meta jumped 5.1%.
Companies associated with Elon Musk also recovered, with Tesla and SpaceX shares rising nearly 6%, partially offsetting their losses from the previous week.
Chipmakers recorded particularly strong performances. AMD shares surged 13.3%, Broadcom advanced 8.8%, Micron gained 6.3% and Intel increased 5.5%.
Nvidia moved in the opposite direction, falling 4.3% after the company launched an independent investigation following reports that its founder and chief executive, Jensen Huang, had been targeted by foreign intelligence.
European equities also finished Monday in positive territory as the technology rally spread across additional sectors, supported by corporate earnings that exceeded market expectations.
Eurogroup President Kiryakos Pierrakakis said candidates from Spain and the Netherlands for the European Central Bank presidency would be presented at a meeting as the current president, Christine Lagarde, approaches the end of her term.
Investor confidence across the eurozone declined by 0.3 points in November to 2.4 points, falling short of analysts' forecasts.
Italian lender UniCredit reported third-quarter earnings and revenue above expectations, sending its shares up 6.3%.
Major European indexes closed higher, with Germany's DAX 40 gaining 1.73%, Britain's FTSE 100 rising 1.02%, France's CAC 40 advancing 1.16% and Italy's FTSE MIB 30 climbing 2.69%. European markets also opened Tuesday's session with further gains.
Asian equities experienced stronger risk appetite toward the end of Tuesday's trading session, following the renewed momentum in technology stocks. SK Hynix shares rose 6.5%, Samsung Electronics advanced 4.5%, LG Innotek gained 4.5%, Kioxia surged 7.5% and Murata climbed 6%.
In China, October exports increased by 35.2%, below expectations, as demand for artificial intelligence and technology-related products remained a key driver. Imports grew by 41.6%, exceeding forecasts. Export growth slowed compared with September amid expectations of weaker momentum in AI development, while import growth accelerated.
China's trade surplus narrowed from $133.5 billion in September to $105.3 billion in October, falling below the projected $125.8 billion. The decline was attributed to the yuan's stronger performance and increased oil imports.
By the end of the session, Japan's Nikkei 225 had climbed 2.5%, South Korea's Kospi advanced 3.8%, China's Shanghai Composite gained 0.1% and Hong Kong's Hang Seng rose 0.3%.
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