Global Markets Climb as Oil Slips, Tech Rallies, Gold Up 1.4 Percent
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MENAFNMarkets were mixed last week as investors weighed the US midterm elections, Middle East developments and a batch of economic data.
Jobs Data Signals Persistent Inflation Risk
Strong US growth and rising personal spending suggest inflationary pressure could linger. Nonfarm payrolls rose by 165,000 in October, beating estimates, while average hourly earnings gained 0.4% month-on-month, also above forecasts. The robust labor market has fueled expectations of further Federal Reserve rate hikes.
Fed officials regard inflation as the central bank’s top concern and aim to bring it down in a timely manner to support growth and employment.
The Democratic sweep in the midterms partly eased political uncertainty. Attention has now shifted to the cost of artificial intelligence (AI) investments and regulatory risks. Semiconductors and AI have been major drivers of US growth in recent years, and analysts expect any limits Democrats place on AI spending to stay at reasonable levels.
Markets at a Glance
US 10-year Treasury yield: up three basis points at 4.89% on Monday
Brent crude (January delivery): down 0.1% at $98.30 a barrel
US dollar index: down 0.2% at 102.1 as oil prices fell
Gold: up 1.4% at $4,124 per ounce
Policy and Geopolitics
The Treasury Department added eight Canadian money services businesses to its sanctions list, accusing them of helping Tehran evade sanctions and carry out illicit financial activity.
Treasury Secretary Scott Bessent urged China to fully and immediately meet its commitments under the Busan agreement in talks with Chinese Vice Premier He Lifeng.
US President Donald Trump said another attack on Iran is unlikely as long as talks on Iran’s nuclear program and the reopening of the Strait of Hormuz make progress.
Tech in Focus
Chipmaker Nvidia said it will open an investigation into founder and CEO Jensen Huang over allegations that he was targeted by foreign intelligence.
Investors are watching this week’s earnings from CoreWeave, Cisco and Applied Materials, which are expected to sway AI stocks.
Wall Street
US stocks ended Nov. 6 mixed. Chip shares fell and tech sold off on worries that AI investment in the US could slow. Micron Technology rose 5.12%, Nvidia gained 2.78%, AMD jumped 11.04% and Intel climbed 7.71%.
The Dow Jones Industrial Average slipped 0.46%, while the S&P 500 added 0.31% and the Nasdaq rose 1.09%. US indexes opened Monday higher.
Europe
European markets closed lower on Nov. 6 amid AI-related concerns. Munich Re shares fell more than 4% after JPMorgan cut its rating to neutral. Daimler Truck ended the day down 3%, as higher profits failed to satisfy investors.
Separately, Spanish economist Pablo Hernandez de Cos and Dutch economist Klaas Knot were nominated to succeed Christine Lagarde, who is stepping down as president of the European Central Bank (ECB).
On Nov. 6, Germany’s DAX 40 fell 1.92%, the UK’s FTSE 100 lost 1.01%, France’s CAC 40 dropped 0.81% and Italy’s FTSE MIB 30 declined 0.9%. European indexes opened Monday mixed.
Asia
Asian equities traded higher near Monday’s close on a tech rally. Taiwan’s Finance Ministry and financial regulator said they will take steps to ease investor concerns.
China’s consumer price index (CPI) rose 0.7% year-on-year in October, below estimates and slower than in September. Its producer price index (PPI) climbed 5.7%, the fastest rise since June 2022, driven by higher oil prices and AI-sector demand. The data point to a gap between weak domestic demand and rising industrial costs.
Near the close, Japan’s Nikkei 225 gained 3%, South Korea’s Kospi rose 1.1%, China’s Shanghai Composite edged up 0.5% and Hong Kong’s Hang Seng added 0.2%.
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