Global markets began the week cautiously as investors awaited key US economic data and Nvidia’s earnings, with concerns over AI valuations and global growth tempering sentiment. Wall Street was little changed, European stocks slipped on technology weakness, and Asian markets traded mixed amid escalating China–Japan tensions.
US stocks were little changed on Monday as investors awaited a busy week of economic data and corporate earnings. The NASDAQ rose +0.2%, the S&P 500 gained +0.1%, while the DOW ended down -0.2%. Nvidia slipped -1.3% after a filing showed Peter Thiel’s hedge fund sold its $100 million stake. Investors now await Nvidia’s upcoming results on Wednesday, seen as a key test of AI enthusiasm and Big Tech valuations. Alphabet jumped +4.3% after Berkshire Hathaway disclosed a $4.9 billion stake. The mixed performance reflected investor caution ahead of the September jobs report and lingering doubts about whether earnings strength can sustain market momentum. The US two-year yield was unchanged at 3.612%, while the 10-year yield lost -2bp to 4.133%.
European stocks reversed early gains to close lower on Monday as concerns over a potential AI bubble and slowing global growth dampened sentiment. The STOXX 600 fell -0.5%, with most sectors and exchanges ending in negative territory. Germany’s DAX lost -1.2%, France’s CAC 40 finished down -0.6%, while the UK’s FTSE 100 was little changed (-0.2%) amid renewed budget uncertainty following the government’s reversal on income tax plans. WPP bucked the trend, rising +11.0% after reports that Apollo Global Management, KKR, and Havas are exploring takeover bids for the UK advertising group. Meanwhile, the European Commission projected the euro-area economy will maintain a moderate expansion despite recent US tariffs, forecasting growth of 1.3% in 2025, 1.2% in 2026, and 1.4% in 2027.
Asian equities ended mixed on Monday ahead of key US economic data and escalating geopolitical tensions between China and Japan. China’s Shanghai Composite fell -0.5% after Beijing warned of major countermeasures—including sanctions and suspended diplomatic and military ties—in response to Japanese Prime Minister Sanae Takaichi’s comments on Taiwan. Hong Kong’s Hang Seng declined -0.7% on Fed policy uncertainty, while Japan’s Nikkei 225 slipped -0.1% after data showed the economy contracted -0.4% in Q3, its first drop in six quarters. Tourism and retail stocks weakened after China advised citizens against travelling to Japan. South Korea’s Kospi surged +1.9%, powered by chipmakers Samsung Electronics (+3.8%) and SK Hynix (+8.2%) ahead of Nvidia’s earnings. Australia’s ASX 200 ended flat, with BHP (-0.6%) under pressure after a UK court ruling linked the miner to Brazil’s 2015 dam disaster, while Pro Medicus (+4.2%) outperformed after securing a $44 million US imaging contract. New Zealand’s NZX 50 gained +0.3% ahead of key company earnings and trading updates later this week.
The WTI crude price slipped -0.1% to US$60.00/bbl; gold fell -0.1% to US$4,079.25/oz; and iron ore dipped -0.1% to US$103.95/MT.