🗓 Tuesday, November 4, 2025
► Europe lower – profit taking & valuation fears weigh; Risk-off tone dominates
European equities fell significantly as global risk sentiment soured following weakness in AI and tech-heavy US markets. Stoxx 600 -0.7%, DAX -1.0%, CAC 40 -1.0%, FTSE 100 -0.4%, FTSE MIB -0.6%, IBEX -0.6%. Bund 10Y 2.65% (-1bp), UK 10Y 4.42% (-2bps). EUR/USD 1.149 (-0.3%), GBP/USD 1.306 (-0.6%). Autos and tech led declines, while defensive sectors like healthcare and utilities outperformed. BP +1% after strong Q3 profit; Philips +2.8% after solid earnings; Orsted flat after $6B windfarm stake sale. Spotify +5% after strong Q3 earnings. UK gilts outperformed as Chancellor Reeves hinted at further tax hikes to ensure fiscal discipline. Broad sentiment turned risk-off.
► Wall Street lower – tech & AI correction triggers pullback
US markets retreated as profit taking spread across AI and big tech names following Palantir’s disappointing post-earnings reaction. S&P 500 -1.1%, Nasdaq 100 -1.6%, Dow -0.6%. Palantir -7% despite strong revenue and raised guidance, as investors flagged stretched valuations (P/S >80). Nvidia -2%, AMD -2% ahead of results, Amazon -2 %, Tesla -3% etc.. UBER -4% despite record trip growth. Goldman Sachs’ Solomon and Morgan Stanley’s Pick warned of a 10–20% market drawdown over the next year, fueling caution. Fed officials gave mixed messages: Goolsbee cited inflation risks, Cook highlighted labor softness, and Daly urged an “open mind” for future cuts. The USD hit its highest level since August as traders priced in a possible rate pause in December.
► Asia lower – tech selloff & Fed uncertainty weigh; Japan leads losses
Asian markets moved lower, pressured by profit taking in AI and chip stocks. Nikkei -1.7%, Kospi -2.4%, Hang Seng -0.8%, Shanghai -0.4%, Shenzhen -1.7%, ASX -0.9%, Nifty -0.6%. USD/JPY 153.4 (-0.5%), USD/CNY 7.12 (+0.1%). Nvidia- and Palantir-linked weakness spread to regional semiconductor and cloud names. Investors remained cautious amid concerns over US valuations and uncertain Fed policy path. China’s recovery indicators remain uneven, adding to broader risk aversion.
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