Global Markets Mixed Amid Economic Data Releases

Asia-Pacific markets were mixed on Wednesday as investors assessed Japan's new government and trade data. Japanese exports rose 4.2% year-on-year in September, beating four months of declines but missing analysts' expectations. The Nikkei 225 index was flat, while SoftBank shares plummeted over 10% before recovering some losses. South Korea's Kospi index rose 1%, and LG Chem shares surged 10% after a report that Palliser Capital urged the company to revamp its board and buy back shares. Australia's S&P/ASX 200 fell 0.71%, while Hong Kong's Hang Seng index slipped 0.79%. Mainland China's CSI 300 was 0.49% lower. The US Dow Jones Industrial Average set a new closing record, driven by strong earnings reports from companies like Coca-Cola and 3M.

The article discusses Netflix's third-quarter earnings, which missed expectations due to a tax dispute with Brazilian authorities. Despite this, the company's revenue met expectations, and its streaming dominance remains unchallenged. The article also touches on other media companies, such as Warner Bros. Discovery and Comcast's NBCUniversal, which are rethinking their strategies. Additionally, the article covers various market news, including India's potential trade deal with the US, Japan's exports returning to growth, and the performance of 'buyback aristocrats.'

European stocks are expected to open in flat-to-negative territory on Wednesday as market momentum stalls, potentially due to uncertainty surrounding a peace deal for Ukraine. The UK's FTSE index is expected to open flat, while Germany's DAX and Italy's FTSE MIB are slightly lower, and France's CAC 40 is down 0.44%. Unicredit's quarterly earnings beat expectations, with a net profit of 2.6 billion euros. Other earnings reports are due, including Barclays, Reckitt Benckiser Group, and SAP. The UK's inflation figures are also expected to be released, with economists forecasting a 4% rise in the consumer price index.

Fund managers are increasingly betting on stocks despite growing concerns about an artificial intelligence (AI) bubble. A Bank of America survey of 166 fund managers found that a third of respondents identified an AI equity bubble as the top threat to markets, up from one in 10 a month earlier. However, the concerns haven't deterred investors, with 60% of those polled saying global stocks are overvalued. Fund managers remain optimistic, with many seeing AI as 'era-defining' and a key driver of long-term growth. Experts warn that intense focus on AI could lead to missed opportunities elsewhere and that valuations could be vulnerable to sudden shifts in risk appetite.

The article provides live updates on the stock market, with stock futures little changed on Wednesday morning after a record-setting session on Tuesday powered by strong corporate earnings. The Dow Jones Industrial Average reached a fresh high above 47,000, driven by companies such as Coca-Cola. However, Netflix shares slumped 6% after an earnings miss, while Intuitive Surgical shares rallied 16% on strong earnings. Investors are awaiting upcoming earnings reports from the 'Magnificent Seven' megacap tech group, including Tesla's earnings on Wednesday. The September consumer price index report due Friday is also a key event, with markets expecting a quarter percentage point reduction in the overnight borrowing rate by the Federal Reserve. Additionally, Fitch Ratings warned of potential losses for U.S. banks from non-bank lending, with loans to non-bank financial institutions reaching $1.2 trillion.

The UK's inflation rate remained steady at 3.8% in September, defying expectations of a rise to 4%. Economists warn that this data is a 'wake-up call' for markets expecting further interest rate cuts, making a November rate cut unlikely. The Bank of England is expected to keep interest rates on hold until the end of 2026, with some predicting a potential rate hike. Chancellor Rachel Reeves expressed dissatisfaction with the inflation numbers and hinted at 'targeted action' to address cost-of-living challenges.