Asian Technology Stocks Rally on SK Hynix Earnings: Asian technology shares continued to climb after chipmaker SK Hynix announced record earnings and plans to return more than $45 billion to shareholders. South Korea’s KOSPI gained 6.6% and was on course for its largest rally in over three months, lifting the broader MSCI Asia Pacific Index by 1.3%. Confidence in the AI trade will continue to be tested by further major technology earnings in the coming days.
Oil Rebounds on Renewed US-Iran Tensions: Brent crude reversed earlier losses after The Wall Street Journal reported that the US had warned Gulf states to prepare for a possible military campaign against Iran following the midterm elections. The oil benchmark touched $116 a barrel, while US Treasuries edged lower. New Zealand government bond yields fell after the country’s central bank defied expectations for a rate hike and left rates unchanged, sending NZD/USD down as much as 1.7%.
Israeli Election Points to Difficult Coalition Talks: Israeli Prime Minister Benjamin Netanyahu and rival Gadi Eisenkot remained neck and neck in the first election since the 2023 Hamas attacks. Their respective blocs were projected to win 51 parliamentary seats each as vote counting continued, pointing to a tense period of negotiations over the formation of the next government.
UK Budget and Federal Reserve Decision in Focus: Chancellor John Healey is due to deliver the UK Budget at 12:30 pm. With gilt yields remaining elevated, Healey is expected to adhere closely to the fiscal rules while providing targeted support for energy prices. Markets will focus on the Chancellor’s remaining headroom against borrowing limits, which has narrowed since the conflict in the Middle East.
In the US, the Federal Reserve is widely expected to leave interest rates unchanged later today, despite September’s hotter-than-expected inflation data. Chair Kevin Warsh may face pressure to explain the rationale behind the decision against a backdrop of rising inflation.
Economic Calendar
- UK Budget Announcement
- Federal Reserve Interest Rate Decision
- Fed Chair Kevin Warsh Press Conference
Key Market Moves Today
- S&P 500 Futures: -0.02% (7757)
- Crude Oil: +2.24% ($102.18)
- Spot Gold: -0.31% ($4,047)
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