Global Stocks Extend Two-Day Rally: Global equities are on course for their strongest two-day gain in more than three months as a renewed technology rally and falling oil prices lift investor confidence. The MSCI All Country World Index has risen 2.6% since Monday’s open. South Korea’s KOSPI led the gains, rising 4.4%, while Japan’s Nikkei 225 climbed 2.4%. Nasdaq 100 futures were unchanged, and S&P 500 futures gained 0.2%.
Technology Stocks Rebound Despite Nvidia Uncertainty: Nvidia closed around 5% lower after falling almost 9% at the open, as investors assessed the investigation into whether Chief Executive Jensen Huang had been targeted by Chinese intelligence. Markets are pricing around a 14% probability that Huang will announce his resignation or be removed by the end of the year. Republicans and Democrats are also finding common ground on tighter restrictions covering chip exports to China.
Elsewhere, Taiwan Semiconductor Manufacturing Company reported a 60% increase in October sales, lifting its shares by 2.7%. Anthropic unveiled upgraded Fable and Mythos models as it seeks to strengthen its position in AI ahead of its planned Wall Street debut.
Brent Falls Below $92 as Iran Risks Ease: Brent crude traded below $92 a barrel after settling 5.9% lower yesterday. President Trump said further strikes against Iran would not be necessary, signalling that the conflict may be winding down following the US midterm results.
US natural gas moved in the opposite direction, rising 5.4% during Monday’s session. Colder weather forecasts increased expectations for heating demand, while lower production and strong LNG exports also supported prices.
US Inflation Data in Focus: Attention now turns to today’s US CPI report at 1:30 pm London time. Monthly headline inflation is expected to slow to 0.3% from 0.6%, while core inflation is forecast to ease to 0.2% from 0.3%. A stronger-than-expected reading could reinforce expectations of a December Federal Reserve rate increase, with markets currently pricing an 80% probability.
The US 10-year Treasury yield fell by one basis point to 4.87%. Gold gained 1.5% yesterday to around $4,150, supported by lower oil prices, a softer dollar and easing yields, before slipping back to $4,117.
Economic Calendar
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US CPI
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US Core CPI
Key Market Moves Today
- S&P 500 Futures: +0.15% (7,585)
- Crude Oil: -1.67% ($85.45)
- Spot Gold: -0.59% ($4,115)
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