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Global equity markets are trading in positive territory, supported by a rally in technology shares driven by optimism around artificial intelligence, while investors await the U.S. Federal Reserve's interest rate decision today.

Reports that Nvidia plans to invest $3 billion in Meta added to demand for tech stocks. Oil prices rose on supply concerns after a reported attack on a Saudi refinery, while Israeli election results remained on a knife-edge.

Fed seen holding rates as investors parse its message

The Fed is widely expected to leave its policy rate unchanged today. Analysts said the tone of the meeting, and any guidance on the rate path in the face of persistent inflation pressures, will matter more than the decision itself.

Fed Chairman Kevin Warsh is not expected to offer many clues about December, but is also seen steering clear of comments that would weaken the rate increase already priced in by markets. Warsh is scheduled to hold a press conference at 21:30.

Oil rises on supply fears and stalled U.S.-Iran talks

Geopolitical developments remain in focus. Reports that Iran-backed Houthis in Yemen attacked a refinery in Saudi Arabia pushed supply concerns higher, and Brent crude for December delivery rose 1.4% to $115.5 a barrel. The absence of concrete progress toward a deal between the United States and Iran is also feeding the increase.

Higher oil prices are stoking inflation concerns and expectations that interest rates could stay elevated for longer. The U.S. 10-year Treasury yield moved back above 5%, and the dollar index climbed to 102.4, its highest level since Oct. 14. Gold was quoted at $4,033 an ounce, down 0.7%. The shift of investors away from safe-haven assets toward rising technology shares also contributed to the move up in bond yields.

According to Israeli media, about 16.8% of the votes in the general election have been counted, with the race between Prime Minister Benjamin Netanyahu's bloc and the opposition running neck and neck. Data published on the website of the Israeli newspaper Yedioth Ahronoth showed the Netanyahu bloc with 50.4% of counted votes and the opposition parties with 49.6%. Analysts said the outcome will shape the geopolitical course in the Middle East and the direction of markets.

Wall Street closes higher and Asia extends the rally

New York stocks ended yesterday's session higher, led by gains in companies linked to artificial intelligence. Nvidia shares rose 1%, Advanced Micro Devices added 5.5% and Micron Technology gained 2.8%. U.S. index futures opened the new day in mixed territory.

On the data side, U.S. durable goods orders, a gauge that informs views on industrial production, rose 1.8% on a monthly basis in September. The Conference Board Consumer Confidence Index climbed to 91.7 in October, above market expectations.

The positive tone from New York carried over into Asian markets. South Korea's SK Hynix reported third-quarter operating profit up 632.1% to 83.3 trillion won and revenue up 327.9% to 104.6 trillion won, lifting its shares 10.1%. Analysts said the figures pointed to sustained demand for the company's AI products. Samsung Electronics shares rose 8.3%. Near the close, Japan's Nikkei 225 was up 1.2%, South Korea's Kospi 6.3%, the Shanghai Composite 0.7% and Hong Kong's Hang Seng 0.4%.

European shares advance except in the UK

European bourses traded mostly higher, helped by yesterday's fall in oil prices. In France, the consumer confidence index fell 5 points from the previous month to 80 in October, its lowest level since June 2013.

Growing competition from Chinese carmakers and production costs are weighing on the profitability of German automakers. Mercedes-Benz cut its profit outlook for 2026 and its shares fell 3.9%. HSBC reported third-quarter pre-tax profit up 32% year on year to $9.6 billion, but did not raise its full-year forecasts, and its shares dropped 5.4%. The decline in HSBC weighed on the London market.

Germany's DAX 40 rose 0.71%, France's CAC 40 gained 0.51% and Italy's FTSE MIB 30 added 0.9%, while the UK's FTSE 100 fell 0.75%. European index futures opened the new day mixed.

The European Central Bank's rate decision is due tomorrow. Rising energy costs and questions over the growth outlook are making it harder for the ECB to balance fighting inflation with supporting activity. The bank raised its three main policy rates by 25 basis points at its September meeting and is expected to hold steady this time. Market expectations point to a possible increase in December.

Istanbul market steadies as fund payments near

The BIST 100 index finished the day little changed at 11,151.03. The October futures contract on the BIST 30 index traded on Borsa Istanbul's derivatives market gained 0.27% in the evening session compared with the regular session close. The dollar ended yesterday up 0.10% at 49.8067 lira and was quoted at 49.8350 in interbank trade today, 0.1% above the previous close.

Fitch Ratings said it expects Turkey's debt capital market to keep growing, with the value of debt instruments outstanding reaching $550 billion by 2027. In the fund dispute drawing close attention, all operating permits and the authorization certificate of Tera Yatırım Menkul Değerler AŞ were revoked, and a decision was taken to compensate investors and wind up the company in gradual liquidation.

Vice President Cevdet Yılmaz, answering lawmakers' questions and criticism in parliament's Planning and Budget Commission on the 2027 central government budget bill and the 2025 final accounts bill, said 68 billion lira had been paid across 93 funds and 71,899 accounts as of Oct. 23. Yılmaz said payments of up to 1 million lira under the extraordinary liquidation will begin on Friday through İş Bankası and Ziraat Bankası, starting with the smallest amounts and moving to larger ones.

Analysts said the trade balance and the Services Producer Price Index are due at home today, while the Fed decision leads a heavy calendar abroad. They put resistance for the BIST 100 at 11,300 and 11,400 points and support at 11,000 and 10,900. Domestic markets will run a half-day session today because of the eve of the Oct. 29 Republic Day holiday.

Key takeaways

• Global stocks are trading higher on an AI-driven technology rally as investors await the Fed's rate decision today.
• Brent crude for December delivery rose 1.4% to $115.5 a barrel after reports of a Houthi attack on a Saudi refinery.
• The U.S. 10-year yield returned above 5% and the dollar index reached 102.4, its highest since Oct. 14.
• Payments of up to 1 million lira under the extraordinary liquidation in Turkey start on Friday via İş Bankası and Ziraat Bankası.