BANGKOK — Global markets faced pressure on Wednesday, with European and Asian indices primarily showing declines following a slight pullback in U.S. stocks. The downturn was primarily attributed to selling in technology and energy sectors.
In the U.K., the FTSE 100 saw a 0.6% increase, reaching 8,299.96 after the latest inflation report revealed a drop to 1.7% in September—the lowest in over three years. This development has led to growing anticipation of a potential interest rate cut by the Bank of England in the near future.
Conversely, France’s CAC 40 dropped 0.6% to 7,473.90, and Germany’s DAX fell 0.4% to 19,414.56. Futures for the S&P 500 remained stable, while the Dow Jones Industrial Average saw a slight 0.1% decline.
In Asian markets, Tokyo’s Nikkei 225 index led declines, plummeting 1.8% to 39,180.30 as tech stocks suffered losses after semiconductor supplier ASML signaled a slower-than-expected recovery in demand outside of the artificial intelligence sector. Notably, chip maker Tokyo Electron experienced a substantial 9.2% drop, and Lasertec Corp. faced a 13.4% decrease.
ASML’s CEO highlighted ongoing potential in the AI market but noted that other segments are experiencing prolonged recovery times. Following their latest quarterly results, ASML’s shares fell dramatically by 16.3% in U.S. trading.
Market unease has been heightened by news that the U.S. government may impose new restrictions on chip exports, particularly aimed at companies like Nvidia and AMD due to national security reasons. Traders are also closely monitoring an upcoming earnings report from Taiwan Semiconductor Manufacturing Corp., which saw its shares decline by 2.3%.
Elsewhere in Asia, Australia’s S&P/ASX 200 index fell 0.4% to 8,284.70. The Kospi in Seoul declined by 0.9% to 2,610.36, while Taiwan’s Taiex and India’s Sensex dropped by 1.2% and 0.5%, respectively. Hong Kong’s Hang Seng index fluctuated but closed 0.2% lower at 20,286.85, whereas the Shanghai Composite index saw a slight gain of less than 0.1%, landing at 3,202.95.
In a bid to mitigate economic pressures, central banks in the Philippines and Thailand have each cut their benchmark interest rates. The Stock Exchange of Thailand (SET) rose by 1.3% following the Bank of Thailand’s decision to lower its main rate by 0.25 percentage points to 2.25%. In the Philippines, the Bangko Sentral ng Pilipinas similarly reduced its benchmark rate by 0.25 percentage points to 6%.
On Wall Street, stocks pulled back from record highs on Tuesday, with the S&P 500 slipping by 0.8%, and the Dow Jones Industrial Average and Nasdaq composite dropping 0.8% and 1%, respectively. Energy stocks also experienced significant declines, with Exxon Mobil losing 3% as oil prices fell more than 4%. Brent crude specifically dropped below $75 per barrel, down from above $80 just a week prior.
The decline in oil prices is largely attributed to concerns over China’s slowing economic growth impacting demand. In addition, fears about possible military action by Israel against Iranian oil facilities have eased, stabilizing the market further.
In early trading on Wednesday, benchmark U.S. crude oil dipped by 12 cents to $70.46 per barrel, while Brent crude decreased by 11 cents to $74.14 per barrel.
In currency markets, the dollar strengthened against the Japanese yen, trading at 149.43, up from 149.22, while the euro fell to $1.0885 from $1.0892.
