Investors in global markets focused on geopolitical developments, central banks’ monetary policy messages and selling pressure on technology companies. Technology shares fell in US and Asian stock markets, while European markets rose on expectations of strong corporate earnings.
Trump’s remarks and the Fed’s message in focus
US President Donald Trump criticized the Houthis’ actions over attacks targeting Saudi Arabia and said the situation was not good. Trump argued that the energy ceasefire agreement reached between Russia and Ukraine had been violated by both sides, but said the agreement remained in effect.
News that Chinese chipmaker CXMT had made progress in chip development intensified selling in global technology stocks. Cleveland Fed President Beth Hammack also said that maintaining a restrictive monetary policy stance was appropriate to bring inflation down to 2%.
Gold gains as Treasury yields fall
The US 10-year Treasury yield fell 4 basis points to 5.20%. Although yields have declined recently, their continued high levels are being monitored for their effects on banks’ loan growth, financing costs and merger activity.
The dollar index stabilized at 102.4 after reaching 102.6 the previous day, its highest level since April 2025. Although the price of December Brent crude fell 0.9% to $105.7 per barrel, it remained elevated due to the impact of geopolitical tensions.
Following the limited pullback in the dollar index and oil prices, gold rose 0.6% to $4,198 per ounce. The International Monetary Fund raised its global economic growth forecast for this year from 3% to 3.1%. The growth forecast for the Türkiye economy was 2.7% this year and 3.6% next year.
Technology stocks decline in New York
Declines in technology stocks on the New York Stock Exchange were a key factor behind the mixed market performance. Micron Technology fell 4%, Nvidia 1.3%, Broadcom 1.9% and AMD 2.3%.
US index futures started the day mixed. Investors will monitor bank earnings due this week to assess the effects of rising Treasury yields on banks’ loan growth and financing costs.
European stocks rise on earnings support
European stock markets moved higher on expectations that strong corporate earnings would support markets. Shares of Germany’s Nordex Group rose 3.9% after orders exceeded expectations.
Defense industry stocks in Germany also gained. Rheinmetall shares rose 2.5%, making them the biggest gainer on the DAX during the session.
Volkswagen said its global deliveries fell 14.3% in the third quarter from the same period last year to 1.89 million vehicles. The company’s shares rose 0.6% after the European Union and China imposed an annual quota limit of 350,000 units on hybrid vehicle imports and the risk of a trade war diminished.
The DAX 40 gained 0.76%, the FTSE 100 0.99%, the CAC 40 0.38% and the FTSE MIB 0.58%. European index futures also started the day mixed.
Chip stocks fall sharply in Asia
Losses in technology stocks on the New York Stock Exchange spread to Asian markets. In South Korea, SK Hynix fell 10.6%, Samsung Electronics 8.4% and LG Innotek 8.6%.
Japan’s producer price index fell 0.3% month on month in September and rose 6.8% year on year. The index had declined 0.2% month on month and risen 7.6% year on year in August. The yen’s strengthening against the dollar in September contributed to the slowdown in producer inflation.
Near the close, the Kospi was down 6.6%, the Nikkei 225 2.1%, the Hang Seng 0.4% and the Shanghai Composite 0.3%.
Borsa Istanbul and the current account balance
The BIST 100 index on Borsa Istanbul ended the day down 0.94% at 12,150.67 points. The October futures contract based on the BIST 30 index moved flat in the evening session compared with the regular-session close.
After closing the previous day at 49.2918, the dollar/Turkish lira traded at 49.3600 at the opening of the interbank market, up 0.1%.
President Recep Tayyip Erdoğan said in remarks after a Cabinet meeting that principal payments of up to 1 million liras would begin in October once the bill concerning fund investigations passed the Grand National Assembly of Türkiye. Erdoğan said additional regulations would strengthen capital markets against such problems and make their functioning healthier.
According to data released by the Central Bank of the Republic of Türkiye, the current account posted a surplus of $4.053 billion in August. Economists participating in a expectations survey had forecast a surplus of $3.5029 billion for August. Abroad, US private-sector employment and September existing home sales will be monitored.
On the BIST 100 index, 12,100 and 12,000 points are being followed as support levels, while 12,300 and 12,400 points are being followed as resistance levels.
Data to watch in the markets
- 15:15: US private-sector employment change
- 17:00: US September existing home sales
