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SoftBank slide drags Japan as global stocks rally

Global equity markets were broadly higher on Tuesday and Wednesday, buoyed by optimism surrounding a potential resolution to the US government shutdown. Investors are closely monitoring developments in Washington, where the US House of Representatives is preparing to vote on Wednesday on a Senate-approved bill aimed at ending the government shutdown, potentially restoring federal operations within days if passed. Japan’s Nikkei 225 lagged regional peers on Wednesday due to a sharp decline in SoftBank Group, following its Nvidia stake sale. In Europe, healthcare and luxury shares led the rally on Tuesday, with Zurich’s SMI outperforming on positive trade news with the US, while Wall Street’s tech names came under pressure as the Dow advanced.

  • Data
  • Autore Shane Strowmatt, Senior Investment Writer
  • Tempo di lettura 5 minuto

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Asian equity markets mostly posted gains on Wednesday, led by South Korea and Hong Kong, where technology shares propelled the Hang Seng index to an over one-month high. However, Japan’s Nikkei 225 index lagged, gaining 0.5%, as significant losses in SoftBank Group, which fell as much as 10% following disclosure of its Nvidia stake sale in October, offset positive earnings from Sony and strength in cyclical sectors. Mainland China indices, including the CSI 300, traded sideways amid concerns over potential restrictions on US military access to rare earths. South Korea’s KOSPI was up 1.1% and Australia’s ASX 200 lost 0.2%. Sentiment across the region was supported by Wall Street’s overnight rally, driven by optimism around a potential resolution to the US government shutdown.

Dow climbs as tech stocks falter

US equity markets delivered mixed results on Tuesday as the Dow Jones Industrial Average advanced by 1.2% to 47,927.96 points amid optimism over a potential resolution to the budget stand-off, while renewed concerns over high valuations weighed on technology stocks, with the Nasdaq 100 dropping by 0.3%. Nvidia led losses among major tech firms, slipping almost 3% after the news about Softbank selling a significant stake in the chipmaker.

European stocks extend rally, Zurich leads

Major European stock indices continued to rally on Tuesday, with the EuroStoxx 50 closing 1.1% higher and approaching its record level reached in October. Gains were led by healthcare shares, which rose nearly 3%, benefiting markets in both Switzerland and the UK, where pharmaceutical stocks hold significant weight; Switzerland’s SMI climbed 2.1% as hopes grew for lower tariffs after US President Donald Trump confirmed negotiations with Switzerland. Luxury goods makers such as Swatch and Richemont advanced strongly amid optimism that reduced tariffs would aid Swiss exports, while Adyen and Vodafone surged after issuing positive business updates. Germany’s DAX climbed 0.5% on Tuesday and France’s CAC 40 advanced 1.3%.

German economic sentiment falls slightly in November

Germany’s ZEW Indicator of Economic Sentiment declined by 0.8 points to 38.5 in November, reflecting a slight decrease in optimism compared to October, according to survey results published on Tuesday. The current situation indicator improved modestly to minus 78.7 points, up 1.3 points from last month. Sector data showed a deteriorating outlook in chemicals and metals, while private consumption rebounded significantly and services saw continued gains. Expectations for the euro area edged up by 2.3 points to 25.0, suggesting cautious optimism in the region despite ongoing structural concerns within Germany.

UK unemployment hits highest level since 2021

UK unemployment rose to 5% in the three months to September, the highest rate since early 2021, according to figures published by the Office for National Statistics on Tuesday. The rate surpassed analyst expectations and was accompanied by slowing average wage growth, which declined to 4.6% in the third quarter from 4.7% in the previous period. Despite the rise, job vacancies saw a modest increase, marking the first uptick in more than three years, though overall hiring remains subdued. The weakening labour market has intensified speculation of a potential interest rate cut by the Bank of England in December.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from Alcon, Bayer, Cisco, E.ON, Infineon, and RWE.

Economic data in focus: German Consumer Price Index (08:00) and Italian manufacturing production (10:00).

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Editor: Alessandro Fezzi
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