German DAX (DE40) fell to a 5‑month low. Investors remain cautious ahead of key economic releases

On Tuesday, the US stocks closed sharply lower. The Dow Jones Index (US30) fell by 1.07%. The S&P 500 Index (US500) dropped 0.83%. The Nasdaq (US100) closed down 1.20%. Expensive valuations of technology companies came under renewed pressure after several weeks of active debt issuance tied to investment programs. The decline was led by mega‑caps: Nvidia lost 2.8%, Microsoft 2.7%, Amazon 4.4%, Tesla 1.9%. Home Depot plunged 6% after cutting its annual prognosis. Markets reduced the probability of a Fed rate cut in December to about 40%, compared with 90% a month ago. The trigger was hawkish comments from several Fed officials and anticipation of new US data, including Thursday’s employment report and the resumption of delayed statistics, which are expected to set the market’s next direction.

Bitcoin fell below $90,000 for the first time since April, then partially recovered to around $92,000. Market pressure intensified due to a broad and sharp investors’ retreat from risk amid concerns about asset overvaluation and reduced odds of further Fed rate cuts. Amid the sell‑off, Bitcoin is heading toward its first annual decline since 2023, trading about 25% below its all‑time high of $126,200 set in October.

European stocks fell to a one‑month low on Tuesday, extending their downward trend amid a global sell‑off driven by concerns over the overvaluation of the global tech sector. Germany’s DAX (DE40) dropped by 1.74% to a 5‑month low, France’s CAC 40 (FR40) closed down 1.86%, Spain’s IBEX 35 (ES35) fell by 2.14%, and the UK’s FTSE 100 (UK100) closed negative 1.27%. The banking sector was among the biggest losers – Santander, Intesa Sanpaolo, and ING each lost more than 3%. Pressure was also felt in cyclical consumer goods and technology segments.

On Wednesday, silver (XAG/USD) rose to $51 per ounce, rebounding from a weekly low, as the sell‑off in risk assets, including tech stocks and digital assets, boosted demand for precious metals as safe‑haven assets. Additional support came from signs of US labor market weakness, which strengthened expectations of further Fed easing.

Platinum (XPT/USD) fell below $1,545 per ounce. Physical demand from automakers declined due to optimization of metal use, while the accelerated shift to electric vehicles reduced the need for platinum catalysts in combustion engines. Clarification of inventory levels in China and early signs of recovery in South African production also weakened the deficit premium, leading to reduced speculative and ETF positions.

Asian markets also traded under pressure yesterday. Japan’s Nikkei 225 (JP225) fell by 3.22%, China’s FTSE China A50 (CHA50) dropped 0.29%, Hong Kong’s Hang Seng (HK50) declined 1.72%, while Australia’s ASX 200 (AU200) closed negative 1.94%.

Seasonally adjusted unemployment in Hong Kong fell to 3.8% for the three‑month period ending October 2025. The number of unemployed decreased by 6,000 to 149,600, while total employment fell by 1,500 to 3.67 million. Hong Kong’s labor market is likely to continue receiving support from steady economic growth, rising business confidence, and recovering consumer sentiment.

In Australia, steady wage growth in Q3, last week’s strong employment report, and persistent inflationary pressures strengthened expectations that the monetary easing cycle is nearing its end. Swap markets now estimate the probability of a final rate cut in May next year at only 50%.

The New Zealand dollar fell to $0.562, remaining near a seven‑month low amid expectations that the Reserve Bank of New Zealand will cut interest rates again next week. Financial markets have fully priced in a 25 basis point cut following a series of weak economic data that bolstered arguments for additional stimulus. Additional pressure on the currency came from newly released data showing producer prices in Q3 rose less than projections, pointing to further easing of inflationary pressures.