Global Markets Divide as Germany Advances and South Korea Lags

On Thursday, October 29, 4 of the 8 tracked global markets finished in positive territory. The standout move of the session belonged to Germany, noticeably bigger than its usual day. That advance made it the top performer as Germany +1.5%, while South Korea -2.5% anchored the bottom. Across the globe, the total world fund moved with US holdings, closing -0.3% as the US fund ended -0.4%.

Understanding how these numbers fit together begins with the clock. These figures reflect US-listed funds, so Japan is how Japan looked to a US investor at the New York close. That time gap is why international funds trade throughout the American session even when underlying home exchanges are closed for the night. On this session, that trading left Japan -0.1% near unchanged in New York trading.

The session's strength concentrated in Europe, where central bank policy and corporate earnings provided support. European markets moved higher after the European Central Bank kept interest rates steady, matching investor expectations. Solid corporate earnings results across Germany added momentum to the advance. The policy pause helped drive gains across the continent, where Eurozone +0.8% and United Kingdom +0.9% advanced alongside Germany +1.5%. Elsewhere, India +1.3% also moved higher, providing another bright spot among major markets.

At the weaker end of global markets, technology shares pulled Asian benchmarks lower. A steep decline in US technology shares carried into Asian trading, pushing Samsung Electronics lower. The retreat accelerated as foreign investors sold shares and expressed disappointment over the absence of new shareholder return plans, leaving South Korea -2.5% as the session's deepest drop. The broader benchmark followed, with Emerging Markets -1.3%, while the session also marked China, its lowest close in a year, with China -0.2% settling near the flat line.

Looking ahead to Friday, Europe sits at the center of the economic schedule. German economic data releases include preliminary third-quarter gross domestic product and provisional October consumer inflation. Across the broader currency area, scheduled releases include the preliminary third-quarter GDP flash estimate and September unemployment figures, as well as forecast updates from central bank analysts. For South Korea, the central bank statistical calendar lists no major data releases.