Global Markets Today, November 4, 2026: Asia Weak Amid Early Indications From US Midterm Polls; India May Start Low

Mumbai, November 4: Indian equity benchmarks are likely to start low on Wednesday, with several Asian markets showing weakness. Investors will also track developments in the US ahead of the midterm elections, with technology stocks and the broader outlook for interest rates remaining in focus. 

Asian Markets 

Asian equities were weak on Wednesday as investors assessed the implications of the US midterm elections and tracked developments in global technology stocks. South Korea’s Kospi fell 3.4%, extending previous session’s losses, while Japan’s Nikkei 225 declined 3.6% and the broader Topix slipped 2.5%. Australia’s ASX 200 was also down 0.8%. 

The weak performance followed a cautious session on Wall Street, with investors positioning themselves ahead of the US election outcome. Early indications from the polls pointed towards a possible Democratic victory over Republicans, adding another layer of uncertainty to the outlook for US fiscal policy, trade relations and government spending. 

Technology stocks remain particularly sensitive to concerns over the sustainability of artificial intelligence-related investments, elevated capital expenditure and the ability of companies to translate these investments into earnings. Weakness in technology-heavy markets has also raised questions about the durability of the recent rally in global equities. 

US Markets 

Overnight, Wall Street ended mixed, with gains in technology and artificial intelligence-linked stocks helping the Nasdaq and S&P 500 advance, while the Dow Jones Industrial Average closed lower. The Nasdaq Composite rose 0.83% to 25,372.01, while the S&P 500 gained 0.36% to 7,568.92. The Dow fell 0.38% to 51,786.72. 

The gains in technology stocks helped offset weakness in several other segments of the market. Apple remained under pressure after the company flagged higher memory-chip costs as a potential drag on margins during the crucial holiday quarter. Its outlook for services revenue growth also disappointed investors, adding to concerns over the near-term earnings trajectory of the technology major. 

Among US stock futures, S&P futures were down 1.2% in Asian trading while Nasdaq futures were down 2.1%, reflecting caution ahead of the midterm election results. Investors are also monitoring the US Treasury’s quarterly refunding announcement and its potential implications for bond yields and financial conditions. 

Crude Oil 

Crude oil prices remained volatile, with traders weighing prospects of a diplomatic breakthrough in the Middle East against the risk of further supply disruptions. Brent crude had settled 0.86% lower at $102.7 a barrel on Tuesday, extending its retreat amid hopes of progress in efforts to end the conflict involving Iran. However, uncertainty surrounding the security of the Strait of Hormuz, a critical shipping route accounting for roughly a fifth of global oil supplies, continued to keep markets on edge. 

The possibility of an easing in geopolitical tensions has helped unwind some of the risk premium in crude prices. However, the prospect of renewed disruptions to shipments could quickly reverse the decline. For India, which relies heavily on imported crude, lower oil prices offer some relief on the inflation, current account deficit and rupee fronts, while also supporting the margins of oil marketing companies and other energy-intensive businesses. 

Indian Market Outlook 

The global cues point towards a lower start for domestic equities on Wednesday. Asian markets have turned lower, while US stock futures also slipped following early indications from the midterm elections. 

The Nifty 50 and Sensex, however, will enter the session today after extending their winning streak to four consecutive sessions on Tuesday, gaining around 5% over the period and closing at two-month highs. 

Strong corporate earnings, easing crude prices and renewed foreign investor buying have supported the domestic rally. Foreign portfolio investors bought Indian equities worth Rs 6,837 crore on Tuesday, extending their buying activity to five of the past six sessions. 

While softer crude prices and improving foreign fund flows could cushion domestic sentiment, investors may turn selective after the recent sharp rally. The US election outcome, developments in the Middle East, movements in the rupee and further earnings announcements are likely to dictate trading direction. 

Source

• Exchanges