LONDON
Global markets are trading positively at the start of the new week, led by falling oil prices and gains in tech stocks.
Markets followed a mixed course last week amid the US midterm elections, developments in the Middle East and macroeconomic data releases.
The US economy’s growth and rising personal expenditures showed that inflationary pressures could persist in the coming period.
US nonfarm payrolls rose by 165,000 in October, exceeding estimates, while average hourly earnings climbed 0.4% month-on-month, beating estimates.
The US labor market remained strong, fueling expectations of further interest rate hikes by the Federal Reserve.
The Democratic sweep in the midterm elections partially eased uncertainty, but the cost of artificial intelligence (AI) investments and regulatory risks now dominate the agenda.
The semiconductor and AI sectors have played a major role in the US economy’s growth in recent years, while analysts expect Democrats’ limits on AI investments to remain at reasonable levels.
Fed officials deem inflation the bank’s top concern and aim to bring it down in a timely manner to support growth and employment.
Meanwhile, the US 10-year Treasury yield is up three basis points at 4.89% on Monday.
The Treasury Department added eight Canadian money services businesses to its sanctions list for allegedly facilitating Tehran’s efforts to circumvent sanctions and conduct illicit financial activities.
Treasury Secretary Scott Bessent urged China to fully and immediately fulfill its commitments under the Busan agreement during his meeting with Chinese Vice Premier He Lifeng.
US President Donald Trump said the likelihood of another attack on Iran is low as long as talks on Iran’s nuclear program and the opening of the Strait of Hormuz progress.
Brent crude oil for January delivery is down 0.1% at $98.30 a barrel on Monday.
The US dollar index is down 0.2% at 102.1 amid falling oil prices, while gold is trading up 1.4% at $4,124 per ounce.
Meanwhile, chip giant Nvidia said it will launch a probe into its founder and CEO, Jensen Huang, over allegations that he was targeted by foreign intelligence.
All eyes are on the earnings reports from CoreWeave, Cisco and Applied Materials this week, as they will influence AI stocks.
The New York Stock Exchange ended Nov. 6 on a mixed trend amid a decline in chip stocks and a tech sell-off due to concerns that AI investments in the US could slow.
Micron Technology shares grew 5.12%, Nvidia shares rose 2.78%, AMD shares soared 11.04%, and Intel shares were up 7.71%.
The Dow Jones Industrial Average fell 0.46%, while the S&P 500 gained 0.31% and the Nasdaq was up 1.09% on Nov. 6. US indexes started Monday on a positive trend.
Meanwhile, European stock markets traded lower on Nov. 6 due to concerns over AI.
Munich Re shares dropped more than 4% after JPMorgan downgraded its rating to neutral, while Daimler Truck closed the day down 3% despite posting higher profits, although they were not enough to satisfy investors.
At the same time, 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).
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 was down 0.9% on Nov. 6. European indexes started Monday on a mixed trend.
Near Monday’s close, Asian equity markets traded positively amid 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 at a slower pace than in September.
The country’s producer price index (PPI) saw its fastest rise since June 2022, climbing 5.7% amid rising oil prices and demand from the AI sector.
The data showed a gap between weak domestic demand and rising industrial costs in China.
Near the close of markets, Japan’s Nikkei 225 rose 3%, South Korea’s Kospi climbed 1.1%, China’s Shanghai Composite edged up 0.5%, and Hong Kong’s Hang Seng was up 0.2%.
