- BIST10010,974-1.72%
- USD49.79+0.05%
- EUR55.52-0.41%
- GOLD3,965.30-1.64%
- INTEREST36.00%-1.00
- BITCOIN77,232-0.72%
- October 30, 202615°
- BIST10010,974-1.72%
- USD49.79+0.05%
- EUR55.52-0.41%
- GOLD3,965.30-1.64%
- INTEREST36.00%-1.00
- BITCOIN77,232-0.72%
- October 30, 202615°
Technology stocks intensify selling pressure across global markets
Selling pressure increased in global markets amid concerns over technology companies’ earnings and whether artificial intelligence investments will translate into profitability. Alphabet shares fell 12.6%, while stock markets in the United States, Europe and Asia moved in different directions; Brent crude rose 1.1%.
Mixed signals from technology companies’ earnings increased questions over whether artificial intelligence investments will translate into profitability. These developments weakened risk appetite in global markets and intensified selling pressure.
Technology stocks fell in US markets
As investors turned to safe-haven assets, the yield on the US 10-year Treasury note fell 10 basis points in the previous session to as low as 4.94%. The yield stood at 4.93% today, while the dollar index fell 0.1% to 101.8.
The possibility of a new US military operation against Iran overshadowed hopes for diplomatic progress. As concerns over supply disruptions rose again, December Brent crude futures increased 1.1% to $116.1 a barrel.
The US economy grew 3.4% in the third quarter, outperforming expectations. The core personal consumption expenditures price index, which excludes food and energy prices, rose 0.3% month on month and 3.1% year on year in September.
The data indicated that inflationary risks persisted and strengthened expectations that the Federal Reserve could raise interest rates in December. Against this backdrop, gold fell 0.5% to trade at around $4,000 an ounce.
Alphabet’s third-quarter profit fell 25% year on year, coming in below market expectations. The company’s shares lost 12.6%, marking the largest one-day post-earnings decline in Alphabet’s history. The company’s market value also fell by approximately $500 billion.
Investors were concerned about the impact of increased spending on artificial intelligence infrastructure on the company’s profit margins, as well as the possibility that artificial intelligence chat tools could take a larger share of Google’s search traffic.
Microsoft reported profit and revenue above expectations, while its capital expenditure came in below forecasts. The company plans to raise approximately $25 billion through a bond sale. Microsoft shares ended the day little changed.
Intel’s third-quarter net profit fell 18% year on year, while Amazon’s net sales rose 12% and its net profit declined 2.4%. In after-hours trading, Intel shares fell 22.4% and Amazon shares declined 7.1%.
On the New York Stock Exchange, the Dow Jones index fell 0.25%, the S&P 500 declined 0.3% and the Nasdaq lost 1.38%. US stock index futures also opened lower.
European markets outperformed
European stock markets rose, supported by positive corporate earnings. The European Central Bank kept its three key policy rates unchanged in line with expectations despite the energy crisis and price pressures triggered by tensions in the Middle East.
European Central Bank President Christine Lagarde signaled that another interest-rate increase could be on the agenda in December, highlighting rising inflation risks in the euro area. The bank also announced that Lagarde would leave office on February 7, 2027, although her term would normally expire in October 2027.
Shell’s third-quarter net profit rose 99% year on year to $10.81 billion. The company’s shares gained 2.06%. The FTSE 100 rose 0.26%, the DAX 40 gained 1.31%, the CAC 40 increased 1.05% and the FTSE MIB 30 rose 0.36%. European stock index futures opened mixed.
Technology-led declines stood out in Asian markets
Losses in technology stocks on the New York Stock Exchange also spread to Asian markets. The Bank of Japan kept its policy rate at 1.25% in line with expectations. The decision was approved by an 8-1 vote, with board member Hajime Takata voting for an interest-rate increase.
The Bank of Japan said for the first time since adopting its 2% inflation target in 2013 that price increases were generally in line with the target. The 2.8% rise in Tokyo’s Consumer Price Index in October strengthened expectations for an interest-rate increase.
Near the close, the Nikkei 225 fell 2.3%, the Kospi declined 2.9% and the Shanghai Composite lost 0.3%. The Hang Seng Index rose 1.6%.
Activity in cryptocurrencies and Türkiye’s markets
Binance said the estimated scale of the security breach on its platform was $6.3 billion and that assets worth approximately $3 billion had been frozen. Following the development, Bitcoin fell 0.8% to $78,099, while Ethereum declined 0.6% to $2,242.
The BIST 100 index on Borsa İstanbul ended the previous trading day 0.13% higher at 11,165.44 points. Markets were closed due to Republic Day on October 29. The October futures contract based on the BIST 30 index rose 0.28% compared with the previous regular-session close.
Dollar/TL ended the previous day up 0.13% at 49.8916. At the opening of the interbank market, the exchange rate traded at 49.9458, 0.10% above the previous close.
Payments of up to 1 million lira under the extraordinary liquidation process began through İş Bankası and Ziraat Bank. Payments will be made starting with the smallest amounts and proceeding toward the larger amounts.
In Türkiye, the summary of the Monetary Policy Committee meeting of the Central Bank of the Republic of Türkiye will be followed. Abroad, euro-area and German growth data, the euro-area unemployment rate and German inflation will be monitored. Technically, 11,300 and 11,400 points stand out as resistance levels for the BIST 100 index, while 11,000 and 10,900 points are support levels.
- Germany’s October unemployment rate: 11:55
- Germany’s third-quarter gross domestic product data: 12:00
- Euro area’s third-quarter gross domestic product data: 13:00
- Euro area’s September unemployment rate: 13:00
- Summary of the Monetary Policy Committee meeting of the Central Bank of the Republic of Türkiye: 14:00
- Germany’s October consumer inflation: 16:00
Source: Anadolu Ajansı
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