Global equities were mixed on Wednesday as Wall Street rebounded on upbeat US jobs data and easing trade worries, while Europe followed suit to move higher, and Asian markets mirrored the US’ Tuesday blues, tumbling amid renewed fears of an AI-driven tech bubble.
US stocks recovered on Wednesday after the previous day’s sell-off, buoyed by upbeat economic data and easing trade worries. The S&P 500 gained +0.8%, the NASDAQ advanced +1.0%, and the DOW climbed +0.6%. Sentiment improved after the ADP payrolls report showed private-sector employment rose by +42,000 in October, reversing September’s decline and highlighting labour market resilience despite the federal shutdown—now the longest in US history at 36 days. Optimism was also lifted by the Supreme Court’s scrutiny of President Trump’s authority to impose broad tariffs, raising hopes some duties may be rolled back. Tariff bellwethers Caterpillar (+3.5%) and General Motors (+3.4%) rose. AMD gained +2.0% after reporting earnings that beat expectations but signalled slowing growth in its AI data centre division, reinforcing broader cooling concerns in the sector. Investors now look to Qualcomm’s results, due after the close, for further insight into the AI trade. The US two-year yield rose +4bp to 3.623%, while the 10-year yield added +6bp to 4.149%.
European stocks ended broadly higher on Wednesday, rebounding from early losses as sentiment improved in step with Wall Street. The STOXX 600 gained +0.2%, while the UK’s FTSE 100 rose +0.6%, Germany’s DAX advanced +0.4%, and France’s CAC 40 climbed +0.1%. Markets found support from bargain-hunting after a cautious start, even as concerns over lofty valuations in AI and technology shares lingered. BMW added +6.9% after reporting third-quarter earnings in line with analyst expectations.
Asian stocks fell sharply on Wednesday, led by steep losses in technology shares amid renewed fears of stretched valuations and an AI bubble. Regional sentiment was dampened by uncertainty over Federal Reserve policy and signs the US economy may be edging towards stagflation. Japan’s Nikkei 225 lost -2.5% as Bank of Japan minutes showed policymakers debating a rate hike, while South Korea’s Kospi dropped -2.8% with Samsung Electronics down -4.9%. Hong Kong’s Hang Seng pared early losses to close slightly lower (-0.1%) after China suspended additional tariffs on certain US goods. China’s Shanghai Composite edged up +0.2% after data showed services activity continued to expand, though at a slower pace. In Australia, the ASX 200 slipped -0.1% as weak iron ore prices weighed on miners, while Goodman Group fell -3.4% after warning of uneven earnings growth next year. New Zealand’s NZX 50 inched up +0.1%, hitting a record high as soft jobs data bolstered expectations of a rate cut later this month.
WTI Crude dipped -1.3% to US $59.78/bbl, Gold rose +1.3% to US $3,982.75, and Iron Ore fell -1.2% to US $104.52.