Morning Wrap (05.11.2025)

US markets saw significant declines on Tuesday, with the technology and consumer discretionary sectors under the most pressure. The NASDAQ fell by around 2%, the S&P 500 dropped about 1.17%, and the Dow Jones Industrial lost slightly over 0.5%. The technology sector was hit the hardest, declining approximately 2.3%, with semiconductor companies weakening particularly strongly, falling by up to 3.7%. Markets were taking profits amid concerns about a possible correction after a prolonged period of gains.

In Q3 2025, AMD beat market expectations, posting record revenues of USD 9.25 billion, driven by the “Client” and “Gaming” segments, with Q4 forecasts projecting further growth to USD 9.3–9.9 billion. The company is increasing R&D investments and securing key AI-related orders, demonstrating that its strategy is generating real revenue, despite a slight miss on gross margin.

In Asia-Pacific, there was a broad sell-off in equities, continuing the declines from Wall Street. Investors are reacting to growing concerns about overvalued technology stocks and potential economic slowdown.

Japan suffered the largest losses, with the Nikkei 225 down 3% and the Topix recording its worst session in over six months. Technology companies led the declines, with SoftBank Group losing around 10%, and selling pressure extending to semiconductor manufacturers.

In South Korea, the KOSPI index fell 4.8%, mainly due to steep drops in Samsung and SK Hynix, triggering a brief halt in futures trading.

In Hong Kong, the Hang Seng index fell 0.28%, while China’s Shanghai Composite remained slightly positive (+0.05%) after Beijing announced a temporary suspension of 24% tariffs on US goods for a year, keeping 10% tariffs in place, which briefly boosted investor sentiment.

In Australia, the S&P/ASX 200 declined 0.24%, following the global risk-off trend and weakening demand for technology-related assets.

Chinese Premier Li Qiang warned that rising protectionism and unilateral trade measures are disrupting the global economic order, calling for cooperation and the defense of free trade amid slowing growth. At the same time, China suspended 24% tariffs on US goods for a year, keeping 10% tariffs, which helped limit stock market losses and eased the strengthening of the yen.

In China, the services PMI fell to 52.6 in October, the lowest level in three months, as export orders contracted and employment declined. Meanwhile, the PBOC set the yuan reference rate at 7.0901 per dollar, slightly stronger than expected (7.1336), signaling modest support for the Chinese currency.

Canada raised its deficit forecasts and lowered growth projections for this year.

From Japan, minutes from the September Bank of Japan meeting confirmed a cautious approach to monetary policy normalization.

The US dollar index (DXY) surpassed 100 for the first time since August 1, reaching 100.255 and gaining 4.2% since September 18. The dollar strengthened against most major currencies, including +1% versus the NZD and +0.91% versus the GBP.

Copper prices have been falling for the fifth consecutive day on global markets.

In the cryptocurrency market, Bitcoin came under heavy pressure, falling to the psychological level of 100,000 USD. Ethereum also experienced a significant correction, losing nearly 8% of its value and hovering around 3,200 USD. These declines are part of a broader risk-asset correction driven by concerns about rising market risks and the Federal Reserve’s hawkish policy, increasing uncertainty and prompting investors to take profits.