Global markets face a packed week as investors assess the AI-led technology selloff, US inflation data, oil price movements and geopolitical risks. Developments in Europe and Asia, along with the COP31 climate summit, will also remain in focus. (Sources: Reuters)
AI selloff puts Big Tech under pressure
The Nasdaq plunged 5.5% on Thursday, marking its biggest single-day decline since April 2025 and wiping out $2.5 trillion in market value. Concerns over rising AI infrastructure costs and the prospect of tighter regulations following Democratic gains in the US midterm elections are weighing on technology stocks.
US inflation data to shape Fed rate outlook
Investors will closely track Tuesday's US consumer price index (CPI) data and Friday's producer price index (PPI) numbers. The CPI is expected to rise 0.3% month-on-month, according to a Reuters poll. Markets are pricing in more than an 80% chance of another Federal Reserve rate hike in December.
Oil prices and Iran tensions remain key risks
Crude oil prices have retreated amid expectations that US President Donald Trump could seek to de-escalate the Iran conflict following Republican losses in the midterm elections. Any fresh escalation could push energy prices higher, stoke inflation and complicate the Federal Reserve's policy outlook.
Europe faces growth and ECB leadership questions
European markets will assess employment figures and revised third-quarter GDP data. The euro zone's preliminary GDP estimate showed 0.4% growth. Investors will also track the race to succeed European Central Bank President Christine Lagarde, with former Dutch central bank governor Klaas Knot and Spain's Pablo Hernandez de Cos among the expected candidates.
COP31 puts climate financing in spotlight
The UN's COP31 climate summit begins in Turkey on Monday, with more than 80 world leaders expected to attend. Discussions will focus on accelerating the transition to clean energy, phasing out fossil fuels and tackling deforestation. Climate financing for vulnerable developing nations is likely to remain a major sticking point.
Asian braces for China data and regional diplomacy
China will release October inflation data on Monday, followed by lending figures later in the week. Meanwhile, Manila will host preparations for the ASEAN summit scheduled for November 15-17, with US President Donald Trump and Chinese Premier Li Qiang expected to attend. New Zealand's closely contested election will also be on investors' radar.(Disclaimer: This slideshow is based on inputs from agencies. These do not represent the views of The Economic Times.)
