Global Market Summary
Global equities exhibited a mixed risk-on/risk-off split, with tech-led US indices surging while Europe and parts of Asia underperformed. The S&P 500 rose 0.80% to 7,165.08 and the NASDAQ Composite jumped 1.63%, driven by a 23.60% rebound in Intel (LSE) and 5.17% rally in Taiwan Semiconductor (HKEX). In Asia, Nikkei 225 advanced 0.97%, supported by export-sensitive sectors, while Hang Seng inched up 0.24% despite a 1.51% drop in crude oil. Europe’s FTSE 100 fell 0.74%, reflecting energy weakness and UK macro jitters. The VIX declined 3.11% to 18.71, signaling reduced volatility, while the US Dollar Index (DXY) retreated 0.29%, easing pressure on EM markets.
Wall Street
Wall Street’s broad tech rally was underpinned by NVIDIA’s +4.32% surge on ASX and Intel’s eye-popping 23.60% rebound as UK-listed shares, signaling speculative short-covering. The NASDAQ’s 1.63% gain—led by AI chipmakers—pushed volume past 10.2 billion shares, a 25% increase from 5-day averages. Sector rotation favored semiconductors and AI infrastructure, while energy and utilities lagged amid falling crude prices. The S&P 500’s 0.80% rise highlighted resilience in mega-cap tech, despite a 4.3% drop in WTI crude to $94.4/barrel, which pressured energy stocks.
Asia-Pacific
Asia-Pacific markets diverged sharply. Japan’s Nikkei 225 rose 0.97%, led by export-oriented manufacturers capitalizing on a 0.29% weaker DXY. Hong Kong’s Hang Seng edged up 0.24%, with Taiwan Semiconductor Manufacturing (HKEX) climbing 5.17%. China’s Shanghai Composite fell 0.33%, reflecting domestic liquidity concerns. Singapore’s USD/SGD was flat at 1.28, while Australia’s ASX 200 dipped 0.08%, weighed by commodity-linked sectors. Cross-regionally, tech outperformed amid AI hype, but energy-linked markets lagged, with oil prices down 1.51% on demand fears.
European Markets
European indices struggled amid energy weakness and hawkish ECB speculation. The FTSE 100 fell 0.74%, with energy producers underperforming as crude oil dropped 1.51%. Germany’s DAX 40 declined 0.11%, pressured by industrial sectors and a 0.29% weaker dollar, which hurt exporters. Euronext markets remained range-bound, with PMI data showing stagnant growth across the eurozone. The DXY’s 0.29% decline alleviated EM pressure but failed to spark a European rebound, as risk sentiment remained tilted toward US tech.
Indian Markets
India’s markets closed sharply lower, dragged by global risk-off flows and IT sector stress. The Nifty 50 fell 1.14% to 23,897.95, while the Sensex dropped 1.29%, underperforming most peers. Key drivers included a 5.29% plunge in Nifty IT, linked to USD-INR volatility and weak global tech earnings, despite the NASDAQ’s 1.63% rally. The Bank Nifty declined 0.38%, with lenders under pressure from RBI’s muted rate-cut expectations and falling bond yields.
- Nifty Midcap 50 fell 1.15%, indicating broad-based weakness, with retail investors (DIIs) outflowing amid FII caution.
- FII flows were likely negative, as a 0.29% lower DXY and 0.30% drop in US 10Y yields (to 4.31%) failed to offset global equities’ uneven performance.
- F&O data showed premiums rising on the Nifty 50, signaling short-term volatility.