South Korea’s KOSPI slid nearly 4% as data centre company Elice recorded a roughly 30% loss in a particularly weak IPO debut.
Strive’s SATS preferred security begins Nasdaq trading
Strive’s (ASST) high-yield preferred security, SATS, has started trading on Nasdaq following its initial public offering.
The shares traded at $85, below their $90 IPO price. At this level, the security’s 15% coupon delivers an effective yield of more than 17%.
U.S. housing starts fall 5.2% in September
New government figures suggest that high interest rates continue to weigh on the U.S. housing market.
Housing starts declined 5.2% in September to a seasonally adjusted annual rate of 1.221 million, falling short of economists’ estimate of 1.3 million. The August reading was 1.288 million.
Building permits slipped to 1.4 million from 1.403 million in August, although the latest figure was slightly higher than the 1.39 million forecast.
The housing data followed a report from the National Association of Home Builders a day earlier, which showed builder confidence falling to its lowest level since 2012.
French bond yields push spread with Germany toward 2011 highs
The gap between French and German government bond yields widened again on Tuesday, approaching levels last recorded during Europe’s sovereign debt crisis in 2011.
France’s 10-year OAT yield rose 3.4 basis points to 4.956%, while Germany’s 10-year Bund yield declined 3 basis points to 3.43%. The spread between the two yields reached approximately 153 basis points, close to a new cycle high.
European Central Bank member Olli Rehn acknowledged the widening French bond spread while appearing before Finland’s parliament on Tuesday, describing the increase as “somewhat” wider.
“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 stocks also weakened, with the CAC 40 dropping 0.8% on Tuesday. The index has fallen about 12% since reaching a high two months ago, making it one of Europe’s weaker-performing markets.
Bitget moves to expand in Southeast Asia with Thai acquisition
Crypto exchange Bitget has agreed to acquire GMO-Z, a licensed cryptocurrency exchange and brokerage based in Bangkok, as it looks to broaden its footprint in Southeast Asia. The purchase price was not disclosed.
The transaction is expected to proceed through BTGT Management, in which Bitget holds an interest. GMO Internet, its subsidiary GMO-Z and the exchange’s other shareholders will transfer their entire ownership stakes to BTGT Management or its designated entity upon completion.
Bitget plans to offer its trading platform to Thai users after the acquisition closes. The deal still requires regulatory approval and must meet other conditions.
Switzerland approves its first Bitcoin-only exchange-traded fund
Switzerland’s financial regulator, FINMA, has approved a Bitcoin ETF for the first time, but did not disclose the fund’s issuer.
The country was the first to authorise cryptocurrency exchange-traded products (ETPs). Previously, rules requiring ETFs to hold more than one asset prevented Bitcoin-only products from qualifying as ETFs, leaving them under the broader ETP classification.
FINMA has now granted an exemption for funds holding only Bitcoin. It cited the cryptocurrency’s “long trading history and particularly high trading volume compared with other cryptocurrencies” as grounds for the decision.
AI stock losses keep financial markets on edge
Investor caution remained elevated as the technology sell-off intensified. South Korea’s KOSPI fell nearly 4%, while Elice tumbled around 30% in its market debut, raising further questions about AI infrastructure valuations.
The downturn reached U.S. pre-market trading, where CoreWeave (CRWV) dropped 4%, Cipher Digital (CIFR) lost 2%, and IREN (IREN) declined 3%. The Invesco QQQ ETF also fell as technology shares faced continued pressure.
Bitcoin posted a modest decline over the previous 24 hours but stayed above $81,000. Gold slipped nearly 1% to just over $4,110 an ounce, while Brent and WTI crude prices each climbed another 2%.
Long-duration U.S. Treasury bonds moved higher as investors appeared to seek defensive positions amid the uncertainty. The iShares 20+ Year Treasury Bond ETF (TLT) advanced 0.5%.
