Overview
- Markets began repricing risk after Tuesday's midterm victory for Democrats, driving heavy losses in tech-heavy indexes including steep falls in the Nasdaq and major chip names.
- Investors are rotating funds into traditional and consumer sectors, which has helped many European bourses hold up because they have lower exposure to big U.S. tech firms.
- Air France-KLM jumped after reporting a 22% rise in third-quarter net profit, while other company results varied and helped shape local market moves.
- Oil has moved back under $100 a barrel on growing optimism about a diplomatic path in the Middle East, which has eased near-term inflation expectations and helped push bond yields lower.
- Policy and firm risks are piling up: the BoE raised rates to 4% citing energy-driven inflation, ArcelorMittal posted a Q3 loss tied to Ukraine-related impairments, and campaign pledges by some newly elected Democrats to curb data-center building could slow demand for semiconductors and related infrastructure.