South Korea’s KOSPI index declined nearly 4%, while data centre operator Elice plunged about 30% in a stock market debut that ranked among the weakest in the country’s history.
Strive’s SATS preferred shares start trading on Nasdaq
Strive’s (ASST) SATS preferred security has begun trading on Nasdaq after completing its initial public offering.
The shares were trading at $85, compared with an IPO price of $90. At the current price, the security’s 15% coupon offers an effective yield exceeding 17%.
September housing starts fall as borrowing costs pressure the sector
New U.S. government data showed further signs that elevated interest rates are weighing on the housing market.
Housing starts dropped 5.2% in September to a seasonally adjusted annual rate of 1.221 million, missing economists’ forecast of 1.3 million. The August figure was 1.288 million.
Building permits also edged down, falling to 1.4 million from 1.403 million in the previous month. However, the result remained slightly above expectations of 1.39 million.
The latest data came a day after the National Association of Home Builders reported that builder confidence had fallen to its lowest point since 2012.
French bond spreads widen to levels last seen during the 2011 debt crisis
French government borrowing costs rose on Tuesday, pushing the yield gap between French and German bonds close to a new cycle high.
France’s 10-year OAT yield increased by 3.4 basis points to 4.956%, while Germany’s 10-year Bund yield fell 3 basis points to 3.43%. The difference between the two yields reached roughly 153 basis points, its widest level since Europe’s sovereign debt crisis in 2011.
European Central Bank policymaker Olli Rehn addressed the widening spread during testimony before Finland’s parliament, acknowledging that French bond spreads had increased “somewhat.”
“All euro-area countries must bring their public deficits under control and thereby ensure their debt sustainability,” Rehn said. “This goes just as much for France as it does for Finland.”
French equities also came under pressure. The CAC 40 fell 0.8% on Tuesday, making it the weakest major European index, and has declined around 12% from its peak two months ago.
Bitget targets Thailand with planned crypto exchange acquisition
Bitget plans to acquire GMO-Z, a licensed cryptocurrency exchange and brokerage headquartered in Bangkok, as it seeks to strengthen its presence in Southeast Asia. Financial details of the proposed transaction were not disclosed.
The acquisition will be carried out through BTGT Management, a company in which Bitget holds an interest. GMO Internet, its subsidiary GMO-Z and the exchange’s other shareholders are expected to transfer all their shares to BTGT Management or its designated entity when the transaction is completed.
Following the deal’s closure, Bitget intends to launch its trading platform for customers in Thailand. The acquisition remains conditional on regulatory clearance and other requirements.
FINMA grants Switzerland’s first approval for a Bitcoin-only ETF
Switzerland’s financial regulator, FINMA, has approved the country’s first Bitcoin exchange-traded fund, though it has not revealed the issuer.
Switzerland was the first jurisdiction to approve cryptocurrency exchange-traded products. However, regulations requiring ETFs to hold more than one asset meant Bitcoin-only funds had previously been categorised as ETPs instead.
FINMA has now introduced an exemption permitting ETFs that invest exclusively in Bitcoin. The regulator pointed to Bitcoin’s “long trading history and particularly high trading volume compared with other cryptocurrencies” as justification for the decision.
AI-driven sell-off deepens as investors remain cautious
Market uncertainty continued on Tuesday as technology stocks faced additional selling pressure. South Korea’s KOSPI lost almost 4%, while Elice shares fell approximately 30% during their market debut, adding to concerns about valuations across the AI infrastructure industry.
The weakness extended to U.S. pre-market trading, where CoreWeave (CRWV) declined 4%, Cipher Digital (CIFR) dropped 2%, and IREN (IREN) slipped 3%. The Invesco QQQ ETF also traded lower amid pressure on technology shares.
Bitcoin edged down over the preceding 24 hours but remained above $81,000. Gold prices fell nearly 1% to slightly above $4,110 per ounce, while Brent and West Texas Intermediate crude oil each advanced another 2%.
Long-term U.S. Treasury bonds showed signs of attracting investors seeking protection from market volatility. The iShares 20+ Year Treasury Bond ETF (TLT) gained 0.5% as uncertainty persisted across financial markets.
