Market Summary
AI Spending Concerns Weigh on Technology Stocks: Renewed concerns over AI investment drove Asian technology shares lower ahead of several key earnings reports this week. South Korea’s KOSPI fell 4.2%, led by chipmakers, while the MSCI Asia Pacific Index declined 1.2%, diverging from Monday’s rebound in US equities. Data-centre infrastructure company Elice Inc. fell as much as 33% on its trading debut in Seoul.
Netflix Earnings Set to Test Market Sentiment: Investor sentiment remains fragile as markets question elevated technology valuations, while persistent energy prices and high interest rates weigh on the earnings outlook. Nasdaq 100 futures fell 0.4%, European futures pointed to a weaker open and the Bloomberg Dollar Spot Index declined 0.2%. Netflix is due to report earnings later today.
Oil Reaches $110 as Hormuz Risks Persist: Treasuries steadied after Monday’s losses were fuelled by reduced safe-haven demand, with the US 10-year yield trading above 5.12%. Gold eased to $4,120 an ounce, while Brent crude rose to $110 a barrel as markets weighed the risk of further attacks in the Strait of Hormuz against robust flows from the Persian Gulf. Although yields remain below their recent highs, uncertainty around global oil supplies continues to cloud the inflation outlook.
French Bonds Fall Following Weekend Unrest: French government bonds declined following violent unrest over the weekend as the government attempts to shore up support for its fiscal programme ahead of next year’s presidential election.
Economic Calendar
- Light economic data calendar
- Netflix Earnings
Key Market Moves Today
- S&P 500 Futures: +0.17% (7,747)
- Crude Oil: +0.11% ($98.64)
- Spot Gold: -0.18% ($4,132)
- Bloomberg Dollar Spot Index: -0.20%
- US 10-Year Treasury Yield: Above 5.12%
- KOSPI: -4.20%
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