ISTANBUL
Global markets traded positively on Monday, driven by tech gains and a drop in oil prices as expectations of new military tensions between the US and Iran ease.
US President Donald Trump said he considers the likelihood of attacking Iran to be low, driving down risk perception and the price of January-delivery Brent crude 1.1% to $91.5 a barrel.
Fed officials said that services inflation is still a challenge amid stable employment as layoffs continued to be limited and economic growth, while urging caution ahead of October inflation data to be released. US consumers’ short-, medium-, and long-term inflation estimates remained unchanged at 3.9%, 3.3%, and 3%, respectively.
The US 10-Year Treasury yield is trading flat at 4.87% and the US dollar is also following a horizontal course at 101.6 on Tuesday. Gold is slightly down by 0.6% at $4,114 per ounce at the same time due to expectations of tightening monetary policy.
The New York Stock Exchange saw a positive trend on Monday, led by tech gains.
Shares of Apple rose 2.4%, Microsoft increased 2.8%, Alphabet gained about 1%, Amazon climbed 3%, and Meta soared 5.1%.
Trillionaire Elon Musk’s companies Tesla and SpaceX’s shares rose by nearly 6%, recouping some of last week’s losses.
Shares of chipmakers like AMD gained 13.3%, Broadcom rose 8.8%, Micron increased 6.3%, and Intel was up 5.5%.
Nvidia shares declined 4.3% after the chip giant launched an independent probe following reports that its founder and CEO, Jensen Huang, had been a target of foreign intelligence.
Meanwhile, European stock markets closed Monday with gains as the tech rally spilled over into other sectors with some firms’ earnings beating expectations.
Eurogroup President Kiryakos Pierrakakis said Spanish and Dutch presidency candidates for the European Central Bank (ECB) will be presented at a meeting, as ECB President Christine Lagarde’s term expires.
The eurozone’s investor confidence dropped by 0.3 points in November, below market estimates, reaching 2.4 points.
Italian banking group UniCredit’s third-quarter earnings and revenue exceeded expectations, driving up its stocks by 6.3%.
Germany’s DAX 40 rose 1.73%, the UK’s FTSE 100 climbed 1.02%, France’s CAC 40 increased 1.16%, and Italy’s FTSE MIB 30 soared 2.69% on Monday. European indexes started Tuesday on a positive trend.
Near Tuesday’s close, risk appetite in Asian equity markets rose amid the rally in tech stocks, as SK Hynix shares gained 6.5%, Samsung Electronics rose 4.5%, LG Innotek increased 4.5%, Kioxia soared 7.5%, and Murata was up 6%.
China’s October exports rose below estimates by 35.2%, driven by the strong demand for artificial intelligence (AI) and tech products, while imports increased above estimates by 41.6%. The export growth slowed compared to September due to an estimated slowdown in AI development, while the pace of imports increased.
China’s trade surplus of $133.5 billion in September fell to $105.3 billion in October, below the estimated $125.8 billion, led by the yuan’s strong performance and the rise in oil imports.
Near the close of trading, Japan’s Nikkei 225 rose 2.5%, South Korea’s Kospi gained 3.8%, China’s Shanghai Composite climbed 0.1%, and Hong Kong’s Hang Seng was up 0.3%.
