Global stocks rise on tech sector rally, oil falls on hopes of end to war with Iran

Technology sector regains leadership

European stock indices continued their growth on Tuesday morning, which had begun on Monday: the British FTSE 100 was up 0.73%, the French CAC 40 rose 1.20%, and the German DAX gained 1.14%. Futures on US indices were also slightly higher, Euronews reported. The rally came on the back of gains in Asia and a rally in the US, while investors awaited US inflation data for October.

Asia and demand for AI chips

In Asia, the rally was led by companies linked to artificial intelligence — a sharp contrast to their decline after the Democrats' victory in the US congressional elections last week, when concerns about tighter regulation intensified. Taiwan's Taiex jumped 2.5%, South Korea's Kospi soared 4.5% thanks to SK hynix and Samsung shares, and Japan's Nikkei 225 closed 2.9% higher. Shares of SoftBank Group, an investor in OpenAI, rose 13.9% ahead of its earnings release — the day before they had fallen to a one-year low.

Chip demand and questions for Nvidia

Confirmation of sustained demand for AI equipment came from Taiwan Semiconductor Manufacturing Co.: its October revenue grew 59.7% year on year. At the same time, traders remained concerned about the sector's profitability given the enormous investments, as well as the situation around Nvidia: the company's shares traded 1% higher in premarket despite the US president's statement that the FBI is investigating CEO Jensen Huang's involvement in an alleged Chinese spy case. AJ Bell investment director Russ Mould noted that some investors apparently believe that whatever happens to Huang, the company will remain the dominant player in the AI chip market.

China's trade surplus

According to customs data published on Tuesday, China's exports in October rose 35.2% year on year, while imports grew 41.6%. This puts the country on track for another record annual trade surplus: in the first 10 months of 2026 it has already exceeded $1 trillion (€893 billion).

Analysts' cautious assessments

Not everyone is inclined to see the rally as a sign of recovery. Stephen Innes of SPI Asset Management wrote that 'the market rose not because sellers suddenly regained their nerve, but because sellers stepped aside.' He pointed out that for the second session in a row, companies receiving huge amounts of capital spending money are outperforming those who provide it — according to him, the market is increasingly asking questions about the return on investment in new AI infrastructure, although equipment suppliers and data center operators can still benefit from existing spending programs. Commenting on the sharp swing in sentiment, Russ Mould remarked: 'It is striking that less than a week ago investors were showing signs of panic, and now markets are cheerfully moving higher as if there is nothing to worry about.'

Oil falls on hopes for peace

Against the backdrop of rising stocks, oil continued to get cheaper: by 10:30 CET both key contracts had lost more than 2.5% after Monday's decline, when Brent fell almost 6%. Brent traded around $90 per barrel, WTI at about $84.70; over the month both grades lost about 20%, as traders bet on a resolution to the more than eight-month conflict with Iran, which had driven up inflation and forced central banks to raise rates. US President Donald Trump said on Monday after a meeting with the Prime Minister of Qatar that there is 'positive momentum' toward ending the war and that further strikes are 'highly unlikely,' although he did not rule out that possibility. Mould added that markets link a possible end to the war with Trump's attempt to save face after the midterm election failure, and that in theory this would help reduce energy costs for consumers and businesses.