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Oil and chip stocks slide

Hopes that the US election result could pave the way for an easing of the Iran conflict weighed on crude prices, while Wall Street rallied on Wednesday. A retreat in the US dollar and bond yields also lifted gold. Thursday’s Asian session was more uneven, with disappointing chipmaker earnings dragging down Korean and Japanese equities despite gains in Hong Kong and Australia. European shares finished Wednesday higher despite a further acceleration in euro-area inflation.

  • Date
  • Author Shane Strowmatt, Senior Investment Writer
  • Reading time 5 minutes

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Oil drops, gold rallies after US election outcome

Brent crude oil futures dropped 0.5% to USD 94.16 a barrel on Thursday as the Democratic victories in the US midterm elections fuelled hopes for progress towards ending the US-Iran conflict and easing supply disruptions. West Texas Intermediate (WTI) futures fell 1.1% to USD 87.15 a barrel. Both Brent and WTI fell more than 8%, respectively, on Wednesday. Spot gold rose 1.6% on Thursday to USD 4125.54 an ounce as the Democratic victory pushed the US dollar and Treasury yields lower. The US Dollar Index declined 0.3% to 101.27 after losing 0.4% on Wednesday, making gold cheaper for overseas buyers, while falling yields reduced the opportunity cost of holding the non-interest-bearing metal. Expectations that Congress would limit US President Donald Trump’s tax cuts and spending plans supported bonds, with the two-year and ten-year US Treasury yields trading lower at 4.6% and 4.8%, respectively.

US stocks rally, AI-related stocks lag

US equities advanced on Wednesday after Democrats won control of both chambers of Congress, with the Dow Jones Industrial Average rising 3% to 53,356.12 points and the S&P 500 gaining 1.6% to 7688.62 points. The Nasdaq-100 increased 0.9% to 28,437.17 points, lagging as concerns about tighter artificial intelligence (AI) regulation weighed on semiconductor stocks, including a 3.2% decline in Nvidia. Investors welcomed prospects for greater policy restraint following the election and US President Donald Trump’s stated willingness to cooperate with Democrats. In macroeconomic data, US private employers added 86,000 jobs in October, matching September’s downwardly revised figure and slightly exceeding market expectations, payroll processor ADP reported on Wednesday. The figures precede Friday’s official US employment report.

Asian stocks diverge as semiconductor shares slump

Korea’s KOSPI fell as much as 5.3% on Thursday, triggering a five-minute restriction on sell-side programme trading, as disappointing earnings from US chip designers Qualcomm and Arm intensified concerns about semiconductor growth. Japan’s Nikkei 225 declined 1.7%, while Hong Kong’s Hang Seng gained 3.5% and mainland China’s CSI 300 rose 0.1%, supported by cheaper central bank financing for share purchases and buybacks. Australia’s S&P/ASX 200 advanced 2.6%, benefiting from lower oil prices and a larger-than-expected September goods trade surplus of AUD 2.83 billion, up from AUD 184 million in August and the highest in seven months.

Euro-area inflation rises to 4%

Euro-area annual inflation increased to an estimated 4% in October from 3.8% in September and 2.1% in October 2025, according to Eurostat’s preliminary figures released on Wednesday. Consumer prices rose 0.4% month-on-month, while annual energy inflation accelerated to 20.8% from 18.9%, driving the increase in the headline rate. Services inflation edged up to 3.3% from 3.2%, while inflation in food, alcohol and tobacco climbed to 1.6% from 1.3%. Core inflation, which excludes energy, food, alcohol and tobacco, remained unchanged at 2.5%. On Wednesday, the Euro Stoxx 50 closed 2.3% higher, while the Swiss Market Index gained 1.9%.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from Airbnb, Cigna, Commerzbank, ConocoPhillips, Deutsche Post, Deutsche Telekom, Rheinmetall, Siemens Healthineers, Toyota Motor, and Veolia.

Economic data in focus: Swiss unemployment rate (09:30), Italian retail sales (10:00), Bank of England interest rate decision (13:00), Swiss National Bank Chairman Martin Schlegel speaks (13:40), US weekly initial jobless claims (14:30), European Central Bank President Christine Lagarde speaks (19:00).

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Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.