Global markets struggled to gain stability on Wednesday, following a weak outlook from Europe's ASML, which impacted the global chip sector. Investors are hopeful that this disappointing forecast is an outlier as more third-quarter earnings reports roll in. The U.S. dollar index held steady around 103, while gold approached its historical high. Meanwhile, WTI oil prices are testing support levels just below $68.

Asia-Pacific Markets

Despite recent efforts by China to stimulate its sluggish economy, the initial boost to stocks from these measures has quickly faded. Mainland China’s index and Hong Kong’s Hang Seng both ended the day in negative territory, each down over 10% from their post-stimulus highs. Investors are now looking ahead to a press conference in Beijing on Thursday, where officials will discuss initiatives to promote the "steady and healthy" development of the property market.
In currency markets, the Australian dollar is testing support below 0.6670 against the U.S. dollar.

European Markets

European bond markets saw some relief as yields dropped, supported by declining oil prices and evidence of significant disinflation across Europe. This has strengthened expectations of another interest rate cut by the European Central Bank on Thursday. The same trend was evident in Britain, where inflation dropped more sharply than expected, falling well below the Bank of England's 2% target. This has increased speculation of a BOE rate cut next month, sending the British pound to its lowest level in nearly two months.

American Markets

The rally in European fixed income markets extended to the U.S., where Treasury yields fell back close to 4%. Futures markets are now fully pricing in a quarter-point rate cut by the Federal Reserve at its upcoming meeting on November 7th.