Morning Bid: Pyrotechnics in stocks and US elections

A look at the day ahead in European and global markets by Gregor Stuart Hunter

Nasdaq futures -0.3%

Nikkei 225 -2.9%

KOSPI -2.3%

SoftBank Group -10.9%

Samsung Electronics -3.9%

A fuse lit on Wall Street turned explosive a day later in Asia, sparking the biggest losses for stocks in Japan and South Korea since April's "Liberation Day" tariff announcement.

The Nikkei 225 tumbled on Wednesday, almost 7% below a record high set the day before, while South Korea's KOSPI slumped as much as 6.2% at one point before recovering, as many high-flying tech sector stocks cratered.

On the bonfire was Softbank Group, plunging as much as 14.4%, as one of Asia's biggest tech investors digested a 2% decline for the Nasdaq Composite overnight, while Samsung Electronics fell as much as 7.8% and SK Hynix dropped as much as 9.2%.

European stocks looked set to join the selloff in early trading, with pan-region futures down 0.7%, German DAX futures falling 0.6% and FTSE futures off 0.3%.

Bitcoin rebounded 1.8% to $102,104 after falling below the $100,000 mark for the first time since June, while gold was last up 0.8% at $3,962 per ounce.

U.S. e-mini futures slid 0.1% after a 1.2% drop for the S&P 500 overnight on fears equity markets may have become overstretched after the CEOs of Wall Street heavyweights Morgan Stanley and Goldman Sachs questioned whether sky-high valuations can be sustained.

Despite the volatility in equity markets, FX remained mostly unbothered, with the U.S. dollar index grazing a five-month high of 100.25.

The yield on benchmark 10-year Treasury notes fell to a low of 4.0542% compared with its U.S. close of 4.091% on Tuesday, but has since edged upwards.

Aside from markets, fireworks of a different kind were set off by Democrats in the U.S., who swept major elections in Virginia, New Jersey and New York City in the first electoral test of U.S. President Trump's latest administration. Democratic socialist Zohran Mamdani was triumphant in the race to become mayor of New York City, the first Muslim to hold the office in America's biggest city.

Key developments that could influence markets on Wednesday:

Earnings:

Marks and Spencer Group, BMW, Novo Nordisk, Enel, Telecom Italia

Economic data:

Germany: Industrial Orders for September, Manufacturing O/P for September, Consumer Goods SA for September, HCOB Services and Composite PMI for October

France: Industrial Output for September, HCOB Services and Composite PMI for October

UK: New Passenger Cars Registration for October S&P Global Service and Composite PMI for October, Reserve Assets Total for October

Debt auctions:

Germany: 16-year and 19-year government debt

(Reporting by Gregor Stuart Hunter; Editing by Jacqueline Wong)