Global shares mixed after Fed holds rates, tech earnings sway sentiment

Global markets traded unevenly after the US Federal Reserve kept interest rates unchanged. Investors weighed divergent technology earnings, cheaper oil and impending central bank decisions.

In Short

• European bourses advanced, led by gains in France and Germany
• Samsung shares slid despite strong results as returns policy disappointed investors
• Microsoft gained after-hours following earnings that surpassed Wall Street expectations

Global shares and US stock futures were mixed on Thursday after the US Federal Reserve kept interest rates unchanged, news agency Press Trust of India reported. European markets rose in early trading, while several Asian indices declined.

Oil prices fell even as US officials warned that renewed military action against Iran could take place after the November 3 midterm elections. Markets were also awaiting policy decisions from the European Central Bank and the Bank of Japan.

Germany's DAX gained 0.8 per cent to 25,912.10, while France's CAC 40 rose 1 per cent to 7,983.15. Britain's FTSE 100 was up 0.5 per cent at 10,744.60. Futures for the S&P 500 fell 0.4 per cent, while those for the Dow Jones Industrial Average gained 0.4 per cent.

The European Central Bank was due to announce the outcome of its meeting later on Thursday. The Bank of Japan was expected to leave its policy unchanged when its meeting concluded on Friday.

Japan's Nikkei 225 climbed 1.1 per cent to 64,659.47, while shares of OpenAI investor SoftBank Group gained 1.8 per cent. South Korea's Kospi fell 1.2 per cent to 5,937.66.

Samsung Electronics, a major component of the South Korean market, dropped 4.1 per cent despite reporting strong quarterly results, as its latest shareholder return policy disappointed some investors. Memory chipmaker SK Hynix gained 2.6 per cent after surging 10.9 per cent in the previous session following better-than-expected quarterly results.

Taiwan's Taiex, which has benefited from the artificial intelligence boom, declined 1.4 per cent. Hong Kong's Hang Seng fell 0.6 per cent to 22,958.65, while the Shanghai Composite index declined 0.8 per cent to 3,651.43. Australia's S&P/ASX 200 gained 0.5 per cent to 8,891.80, and India's Sensex surged 1 per cent.

Earnings reports from major US technology companies affected markets that had been supported by high investor expectations linked to the global interest in artificial intelligence. Shares of Google's parent company, Alphabet Inc., fell about 10 per cent in after-hours trading after its quarterly revenue disappointed investors, raising questions about whether it could generate enough sales to justify its large investments in AI.

Microsoft shares, however, gained nearly 3 per cent in after-hours trading after the company reported better-than-expected earnings. On Wednesday, the S&P 500 added 0.3 per cent, the Dow Jones Industrial Average gained 0.2 per cent and the technology-focused Nasdaq Composite rose 0.3 per cent.

In the bond market, the yield on the 10-year US Treasury eased to around 5 per cent after briefly rising to about 5.04 per cent on Wednesday. The yield on the two-year Treasury steadied at about 4.69 per cent, down from more than 4.77 per cent on Wednesday.

In early trading on Thursday, Brent crude, the international benchmark, fell 0.8 per cent to USD 110.77 a barrel. The price remained well above the roughly USD 72-a-barrel level seen before the Iran war began in late February. Benchmark US crude declined 1.1 per cent to USD 101.67 a barrel, according to Press Trust of India.

The US dollar edged up to 157.86 Japanese yen from 157.84 yen, while the euro rose to USD 1.1155 from USD 1.1154.

Overall, global markets remained mixed after the Federal Reserve held rates steady, with investors assessing technology company earnings, awaiting further central bank decisions and monitoring falling oil prices amid warnings of possible renewed military action against Iran.

With PTI Inputs

- Ends