Global markets showed mixed reactions on Thursday as the U.S. Federal Reserve maintained its interest rates. The decision came amid heightened tensions over potential military action against Iran, which contributed to a decline in oil prices despite warnings from U.S. officials about possible escalations after the upcoming midterm elections.
In Europe, major indices saw gains with Germany’s DAX rising 0.8% to 25,912.10, France’s CAC 40 climbing 1% to 7,983.15, and Britain’s FTSE 100 up 0.5% at 10,744.60. Meanwhile, U.S. futures were split, with the S&P 500 futures down 0.4% and the Dow Jones Industrial Average futures up 0.4%. Investors are also awaiting the European Central Bank’s meeting later in the day and the Bank of Japan’s decision on Friday.
Asian markets displayed varied performance, with Tokyo’s Nikkei 225 climbing 1.1% to 64,659.47 and SoftBank Group’s shares gaining 1.8%. In contrast, South Korea’s Kospi dropped 1.2% to 5,937.66, driven by a 4.1% fall in Samsung Electronics despite strong quarterly results. Taiwan’s Taiex and Hong Kong’s Hang Seng also declined, while Australia’s S&P/ASX 200 and India’s Sensex saw gains.
The technology sector faced volatility following earnings reports. Alphabet Inc., Google’s parent company, saw its shares plummet about 10% in after-hours trading after reporting disappointing quarterly revenues, raising concerns about its AI investments. Microsoft, however, gained nearly 3% after surpassing earnings expectations. On Wednesday, the S&P 500 and Nasdaq composite each added 0.3%, while the Dow Jones Industrial Average rose 0.2%.
In the bond market, the yield on the 10-year U.S. Treasury eased to around 5.00%, down from a brief spike to 5.04% on Wednesday. The two-year Treasury yield also steadied at about 4.69%. Oil prices fell, with Brent crude dropping 0.8% to $110.77 per barrel and U.S. crude down 1.1% to $101.67 per barrel. The U.S. dollar saw slight gains against the Japanese yen, while the euro remained relatively stable.