{"id":74249,"date":"2026-11-06T05:08:20","date_gmt":"2026-11-06T09:08:20","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-retreat-as-geopolitical-tensions-ease-and-us-election-shifts-outlook\/74249\/"},"modified":"2026-11-06T05:08:20","modified_gmt":"2026-11-06T09:08:20","slug":"global-markets-retreat-as-geopolitical-tensions-ease-and-us-election-shifts-outlook","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-retreat-as-geopolitical-tensions-ease-and-us-election-shifts-outlook\/74249\/","title":{"rendered":"Global Markets Retreat as Geopolitical Tensions Ease and US Election Shifts Outlook"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">Oil prices<\/a> plunged over 7%<\/strong>, with Brent crude falling below <strong>$98 per barrel<\/strong> and WTI trading near <strong>$90<\/strong>, as diplomatic talks between Iran and Qatar eased fears of a Middle East supply disruption.<\/li>\n<li><strong>US Treasury yields hit two-month lows<\/strong>, with the 10-year yield dropping to <strong>4.82%<\/strong> as traders bet on a bond rally ahead of the October nonfarm payrolls report.<\/li>\n<li><strong>Copper prices slumped to $13,642 per ton<\/strong>, their lowest level since July, driven by concerns that the US election outcome will lead to tighter AI regulations and reduced tariff protections.<\/li>\n<li><strong>Japan\u2019s Prime Minister Sanae Takaichi<\/strong> announced an emergency response package to combat a wave of AI-powered cyberattacks targeting major domestic firms.<\/li>\n<\/ul>\n<h2>Energy Markets: Oil Prices Tumble on Diplomatic Breakthroughs<\/h2>\n<p>Global oil benchmarks experienced a sharp correction on Friday as markets reacted to signs of de-escalation in the Middle East. <strong>Brent crude<\/strong> fell significantly below the <strong>$100<\/strong> threshold, settling under <strong>$98 per barrel<\/strong>, while <strong>US West Texas Intermediate (WTI)<\/strong> hovered around <strong>$90<\/strong>. The sell-off was triggered by reports that Qatar\u2019s Emir held productive de-escalation talks with US President Donald Trump, alongside news that Iran is reviewing new proposals regarding its nuclear program.<\/p>\n<p>Despite the price drop, Tehran continues to demand the removal of the <strong>US naval blockade<\/strong> and sanctions relief before fully reopening the <strong>Strait of Hormuz<\/strong>. <em>Market volatility remains high<\/em> as traders weigh these diplomatic efforts against the potential for renewed tensions following the US midterm election results. Analysts note that while the geopolitical risk premium is &quot;bleeding out,&quot; the physical balance of the market remains tight until maritime transit fully normalizes.<\/p>\n<h2>Fixed Income: Treasury Traders Position for Bond Rally<\/h2>\n<p>US Treasury yields continued their downward trajectory as investors shifted into safe-haven assets ahead of the October employment report. The <strong>10-year Treasury yield<\/strong> fell to <strong>4.82%<\/strong>, its lowest level since early September, while some options traders are betting on a further decline toward <strong>4.35%<\/strong>. This rally is being fueled by a global stock market sell-off and weakening expectations for aggressive Federal Reserve interest-rate hikes in December.<\/p>\n<p>Economists expect October nonfarm payrolls to show a modest increase of <strong>65,000<\/strong>, up from September\u2019s <strong>29,000<\/strong> gain. However, the cooling of inflation expectations\u2014aided by the recent collapse in oil prices\u2014has provided the Fed with more breathing room. <em>The bond market is increasingly viewing Treasuries as the primary beneficiary<\/em> of a &quot;risk-off&quot; environment following the Democratic Party&#39;s sweep of Congress, which may lead to more restrained fiscal spending.<\/p>\n<h2>Industrial Metals: Copper Hits 3-Month Low on AI and Tariff Fears<\/h2>\n<p>Copper prices dropped as much as <strong>1.5%<\/strong> on the London Metal Exchange, hitting <strong>$13,642 per ton<\/strong> as the &quot;AI trade&quot; faced renewed scrutiny. The decline reflects growing anxiety that the new political landscape in Washington could result in tighter regulations on artificial intelligence, potentially slowing the massive infrastructure investment required for data centers. Companies heavily involved in AI infrastructure, such as <a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>) and <a href=\"https:\/\/stockmarketwatch.com\/stock\/MSFT\" data-internallinksmanager029f6b8e52c=\"18\" title=\"Stock: MSFT\">Microsoft<\/a> (<a href=\"\/stock\/MSFT\">MSFT<\/a>), have seen a broader tech sell-off impact sentiment across the industrial metals complex.<\/p>\n<p>Furthermore, the Democratic control of Congress has reduced the likelihood of aggressive US import tariffs on refined copper. <em>This shift has narrowed the price premium<\/em> on American copper, encouraging metal flows back into global markets and easing the supply squeeze that had characterized the previous quarter. While physical demand in China remains record-high, with premiums exceeding <strong>2,500 yuan per ton<\/strong>, the macro-economic outlook for industrial metals remains clouded by US policy uncertainty.<\/p>\n<h2>Japan: Takaichi Vows Emergency Action Against Cyberattacks<\/h2>\n<p>Japanese Prime Minister <strong>Sane Takaichi<\/strong> has formulated an emergency response package to address a surge in AI-powered cyberattacks. The move comes after dozens of Japanese businesses, including GMO Internet Group (<a href=\"\/stock\/GMO\">GMO<\/a>), reported unauthorized access and ransom demands reaching as high as <strong>$50 million<\/strong>. Takaichi stated that Japan would seek &quot;mutually beneficial relationships&quot; with China while simultaneously building robust defenses to protect national interests and critical infrastructure.<\/p>\n<p>The emergency package includes the launch of a dedicated <strong>&quot;cyber rescue team&quot;<\/strong> and the implementation of &quot;active cyber defense&quot; measures. These measures allow the Self-Defense Forces to neutralize threats at their source. <em>The government is also coordinating with international allies<\/em> to identify the perpetrators, as reports link some of the attacks to the Chinese AI tool &quot;Artex.&quot; Takaichi emphasized that building a resilient digital economy is a top priority for her administration.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Oil prices plunged over 7%, with Brent crude falling below $98 per barrel and WTI trading near $90, 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