BANGKOK– Markets in Europe and Asia were mixed on Wednesday after US stocks retreated from their records, hurt by selling of shares in the technology and energy sectors.
Britain’s FTSE 100 rose 0.6% to 8,300.26 after the government reported inflation in Great Britain fell to 1.7% in September, the lowest level in more than three years. That reinforced expectations that the Bank of England will cut interest rates at its next policy meeting.
In Paris, the CAC 40 lost 0.8% to 7,461.35, while the German DAX fell 0.1% to 19,463.02.
The future for the S&P500 and the Dow Jones Industrial Average fell 0.1% lower.
In Asian trading, Tokyo’s Nikkei 225 index fell 1.8% to 39,180.30, leading the decline as technology shares fell after Dutch computer chip equipment supplier ASML warned of a slower recovery in semiconductor demand outside the AI boom.
Chipmaker Tokyo Electron fell 9.2% and Lasertec Corp., which makes equipment to inspect chips, lost 13.4%.
The Australian S&The P/ASX 200 fell 0.4% to 8,284.70.
In Seoul, the Kospi lost 0.9% to 2,610.36, while Taiwan’s Taiex fell 1.2%. India’s Sensex lost 0.5%.
Chinese stocks largely advanced, recovering from recent losses.
Hong Kong’s Hang Seng rose 0.4% to 20,392.25, while the Shanghai Composite index was less than 0.1% higher at 3,202.95.
On Tuesday, Wall Street retreated from its records, with the S&P500 fell 0.8% to 5,815.26, a day after setting a highest ever for the 46th time this year. The Dow Jones Industrial Average fell 0.8% to 42,740.42, and the Nasdaq composite fell 1% to 18,315.59.
Exxon Mobil fell 3%, and energy stocks fell to some of Wall Street’s biggest losses after oil prices fell more than 4%. A barrel of Brent crude oil, the international standard, has fallen to below $75, down from more than $80 last week.
Crude oil prices have weakened as China’s weak economic growth raises concerns about oil demand. At the same time, concerns have diminished that Israel might attack Iranian oil facilities as part of its retaliation against Iranian oil installations. rocket attack early this month. Iran is a major producer of crude oil, and a strike could boost exports to China and elsewhere.
Oil, however, recovered in early Wednesday trading, with U.S. benchmark crude rising 45 cents to $71.03 a barrel. Brent crude rose 38 cents to $74.63 a barrel.
Nvidia was the heaviest weight on the S&P500 and fell 4.5%. The chip company’s shares are still up 166.2% year to date on euphoria over the profits created by the artificial intelligence technology boom.
In ASML’s latest quarterly results, CEO Christophe Fouquet said that AI continues to offer strong upside potential, but that “other market segments will take longer to recover.” ASML’s US-traded shares fell 16.3%.
“Fears have also been heightened by reports that the US is considering new restrictions on chip exports to specific countries, particularly targeting Nvidia and AMD, citing national security concerns,” Anderson Alves of ActivTrades said in a commentary. Traders are looking forward to an earnings report from Taiwan Semiconductor Manufacturing Corp., due Thursday. Shares of TMSC fell 2.3% on Wednesday.
Wolfspeed rose 21.3% on Tuesday after the Biden-Harris administration announced plans to increase it $750 million in direct financing to the company. The money will support the new silicon carbide plant in North Carolina, which makes the wafers used in advanced computer chips.
Walgreens Boots Alliance was another winner, up 15.8%, after beating analyst expectations. The drugstore chain also said yes closes approximately 1,200 locations over the next three years as it tries to turn around its struggling U.S. business.
In the bond market, trading in Treasuries resumed Monday after a holiday, and yields fell after a weaker-than-expected report on New York state manufacturing.
The yield on the 10-year government bond fell to 4.03% from 4.10% at the end of Friday.
On Wednesday, the dollar rose from 149.22 yen to 149.27 Japanese yen. The euro fell from $1.0892 to $1.0883.
