Global markets softened on Thursday as US tech losses dragged Wall Street lower despite the end of the government shutdown, while Europe slipped on weak earnings. Most Asian markets rose on improved sentiment, though Australia lagged after strong jobs data dampened rate-cut hopes.
US stocks fell on Thursday as renewed weakness in technology shares weighed on the major indices, even as the government’s reopening offered some relief to broader markets. The DOW lost -1.0%, pulling back from record highs set in the prior session. The S&P 500 declined -1.3%, led by losses in communication services and information technology, while the NASDAQ dropped -2.0% as selling pressure intensified in AI-linked names including Nvidia (-4.1%), Broadcom (-4.8%), and Alphabet (-2.8%). Disney was another major drag, losing -8.0% after posting mixed fiscal fourth-quarter results. While optimism over the government’s reopening initially buoyed sentiment, traders grew cautious amid fading hopes for near-term rate cuts. Bond yields rose in response, the US two-year yield adding +2bp to 3.587% while the 10-year yield gained +3bp to 4.108%. Investors and the Fed will have to make do without the October jobs and CPI data, which are unlikely to be released despite the shutdown’s end.
European stocks turned lower on Thursday as early gains faded amid mixed earnings and caution ahead of key data following the US shutdown’s end. The STOXX 600 dipped -0.6%, masking broader weakness across major indices, with the UK’s FTSE 100 down -0.3%, Germany’s DAX off -0.4%, and France’s CAC 40 bucking the trend to gain +0.7%. In the UK, 3i Group plunged -16.0% despite a sharp rise in first-half earnings, after warning of a challenging trading environment and weakness in its key retail holdings. Siemens AG (-9.4%) weighed on the German market after reporting a drop in fourth-quarter net profit, missing market expectations. Economic data showed the UK economy expanded just +0.1% in the third quarter, underscoring sluggish growth momentum as investors await further indicators on the region’s recovery.
Asian equities traded mostly higher on Thursday, buoyed by optimism following the end of the record US government shutdown and supportive signals from Beijing. China’s Shanghai Composite rose +0.7% on reports of a new government plan to boost the battery industry and related infrastructure. Japan’s Nikkei 225 gained +0.4%, while South Korea’s Kospi advanced +0.5% and Hong Kong’s Hang Seng added +0.6% as regional sentiment improved. In contrast, Australia’s ASX 200 fell -0.5% to an eight-week low as stronger-than-expected October labour data led markets to slash expectations for a May rate cut. Xero (-9.0%) fell after its first-half results showed higher-than-expected expenses despite an earnings beat. New Zealand’s NZX 50 slipped -0.5% as gains in Mainfreight (+8.7%) and SkyCity Entertainment (+6.4%) were offset by losses in Infratil (-5.5%) despite a strong result.
WTI crude rose +0.6% to US$58.85/bbl, gold remained flat at US$4,200.49/oz, and iron ore inched up +0.6% to US$104.17/MT.