Overseas Overnight Markets Slide as Global Tech Sell-Off Deepens — November 18, 2025

(STL.News) Overseas Overnight Markets – Global markets faced another wave of volatility overnight as traders across Asia, Europe, and the Middle East reacted sharply to Monday’s steep decline in U.S. equities. The central theme remained consistent across every region: risk-off sentiment, concentrated selling in technology and AI-linked stocks, pressure on commodities, uncertainty over the timing of U.S. Federal Reserve rate cuts, and mounting concerns about overstretched valuations.

As investors prepared for the U.S. session on Tuesday, November 18, 2025, the tone across global markets suggested a cautious and defensive environment, with technical indicators warning that several major indices may be entering deeper corrective territory.

Overseas Overnight Markets – Asia-Pacific: A Sharp Turn Lower as Tech Slumps

Overseas Overnight Markets: Asian markets were the first to absorb the shockwaves from Wall Street, and the reaction was decisive. Nearly every major index opened significantly lower, widening losses throughout the session.

Japan: Selling Accelerates as Markets Break Support

Japan’s benchmarks slipped more than 3% intraday, with widespread declines across semiconductors, robotics, cloud technology, and AI-related names.

From a technical perspective:

• Major Japanese indices fell below their 20-day and 50-day moving averages, signaling a potential short-term trend reversal.
• Momentum indicators, including RSI (relative strength index), pushed into the mid-30s—still above oversold territory but reflecting intensifying downward momentum.
• Futures markets also tested a key support zone near the lower Bollinger Band, suggesting volatility could continue into midweek.

A parallel concern was the sell-off in long-dated Japanese government bonds, which pushed yields higher and amplified worries about how the incoming government might fund its fiscal agenda. Traders were increasingly sensitive to the possibility of renewed upward pressure on domestic yields, which has historically weighed on equity valuations.

South Korea: AI and Semiconductor Stocks Hit Hard

Overseas Overnight Markets: South Korea mirrored Japan, with major indices dropping more than 3% as chipmakers and AI giants faced heavy liquidation.

Technical conditions reflected a notable shift:

• The index printed its third consecutive bearish candle, breaching short-term support that had held since early October.
• Trading volumes rose sharply—often a sign of institutional repositioning or systematic selling.
• The MACD histogram deepened its negative reading, reinforcing the view that bearish momentum has reasserted control.

Investors were particularly focused on global AI valuations and whether the technology sector has outrun fundamentals ahead of several major U.S. earnings reports expected this week.

Australia and Hong Kong: Broader Weakness Takes Hold

Overseas Overnight Markets: The Australian market declined across financials, energy, and technology—continuing a multi-session downtrend. Hong Kong’s major indices suffered similar pressure, especially in large-cap tech names, e-commerce platforms, and gaming companies.

Across both regions:

• Price action hovered near one-month lows, with some sectors already retracing close to 38–50% Fibonacci levels of their October–early November rally.
• Volatility indices for the region rose, suggesting traders expect larger price swings in the days ahead.

India: Moderate Declines but Resilient Structure

Overseas Overnight Markets: India’s markets fell as well, but showed relative resilience compared to the broader region. The Nifty retested support around 25,900, while the Sensex slipped moderately amid weakness in IT, metals, and real estate.

Despite the pullback, India’s trend structure remained intact:

• The index is still trading well above its 100-day moving average, maintaining a bullish longer-term posture.
• RSI levels remained neutral, suggesting India’s decline may be more of a consolidation rather than a steep correction.

Overseas Overnight Markets – Europe: Selling Accelerates as the STOXX 600 Breaks Trendline Support

Overseas Overnight Markets: European markets opened sharply lower and remained negative throughout the early session, reflecting global weakness and deepening concerns about U.S. Federal Reserve policy.

STOXX 600 Drops, Tech and Cyclicals Lead Declines

The STOXX 600 fell between 1% and 1.5%, extending Monday’s losses and bringing the index near a fresh weekly low. Tech, miners, autos, construction, and banks—all highly sensitive to global growth and interest rates—led the downturn.

Technical conditions added pressure:

• The index decisively broke below a rising trendline that had supported prices since early October, suggesting a potential shift to a corrective phase.
• The downward breach pushed prices toward the 50-day moving average, a level watched by momentum traders as a signal of near-term direction.
• European volatility gauges climbed, but not to panic levels—an indication that investors remain cautious without showing signs of capitulation.

Germany, France, and the U.K.: Broad-Based Weakness

Germany’s major index struggled as auto manufacturers, chemical producers, and industrials turned negative.

• Price action revisited a familiar support band near the 15,700 range, where buyers had previously stepped in.

France’s markets were equally weak, with luxury goods, industrial automation, and cloud technology stocks all down.

The U.K. experienced declines in financials, energy, and fintech—mirroring the general risk aversion seen across Europe.

• The FTSE’s chart showed a slide back toward its 100-day moving average, which remains an important pivot level for long-term trend watchers.

Overseas Overnight Markets – Middle East & Gulf Markets: Lower on Softening Oil and Fed Uncertainty

Overseas Overnight Markets: Gulf markets traded lower in early sessions, tracking the broader global downturn and facing additional pressure from softening oil prices.

Oil-Linked Indices Retreat

Major indices across the UAE, Qatar, and Saudi Arabia moved lower, weighed by concerns over:

• Renewed Russian export flows after recent disruptions
• Questions about the depth of global demand
• Shifting expectations around the Federal Reserve’s rate-cut timeline

From a technical angle, several regional markets began testing:

• Short-term moving averages, which have acted as reliable support over the past month
• Lower trendline support, particularly in energy-heavy indices

A deeper correction could emerge if oil remains under pressure in the coming sessions.

Overseas Overnight Markets – Currency Markets: Safe-Haven Tone, Choppy Trading Across Majors

Overseas Overnight Markets: Foreign exchange markets reflected the global risk-off tone. While not a panic-driven session, safe-haven assets showed moderate strength while risk currencies struggled.

Japanese Yen: Volatile Amid Policy Speculation

The yen traded choppy, fluctuating in a narrow yet active band as global investors adjusted expectations for potential shifts in Japanese monetary policy.

Technical indicators highlighted tightening conditions:

• Bollinger Bands narrowed, suggesting a potential volatility breakout.
• The pair hovered near the 200-day moving average, a line that often separates long-term bullish or bearish phases.

Indian Rupee: Mild Weakness but Limited Follow-Through

The rupee weakened slightly in early trade as India’s equities dipped, though the currency later retraced a portion of those losses.

Key levels:

• The pair tested the upper boundary of a two-week consolidation channel, signaling traders’ hesitation to push the currency into new territory.
• Support remained firm near the lower end of last week’s range.USD/CAD: Consolidation Continues

The U.S. dollar traded in the mid-1.38 range against the Canadian dollar, showing limited conviction either way.

The chart displayed:

• A tightening triangle formation
• A flattening 20-day moving average
• A divergence between MACD and price—often a precursor to a directional breakout

All of these signaled that USD/CAD may be setting up for a larger move once markets gain clarity from U.S. economic data later in the week.

Overseas Overnight Markets – Crypto Markets: Bitcoin Dips Below $90,000 Before Rebounding

Cryptocurrency markets were not spared from global volatility. Bitcoin briefly slipped below the psychologically important $90,000 mark, marking its lowest level in months before recovering some ground later in the session.

The move carried several technical implications:

• The break below $90,000 tested a major support floor, which had held for nearly seven months.
• RSI fell toward the 30 level, highlighting conditions approaching oversold territory.
• Volume spiked noticeably, suggesting forced liquidations and systemic repositioning.

Other cryptocurrencies followed similar patterns, with altcoins also under pressure amid rising global risk aversion.

Overseas Overnight Markets – Commodities: Oil and Gold Move Lower

Oil: Supply Restoration and Fed Questions Pressure Prices

Oil benchmarks slipped between 0.5% and 0.6% during Asian and European trading as supply constraints eased and traders reassessed global economic expectations.

Technical levels came sharply into focus:

• Prices dipped near the 50-day moving average, a key trend gauge.
• The commodity tested an intermediate support zone created during the rally in early November.
• The momentum profile weakened, and the MACD crossed into negative territory.

Traders remained attentive to geopolitical developments, but the session’s tone was firmly risk-off, driven by macroeconomic uncertainty rather than immediate supply fears.

Gold: Softer as Markets Stay Cautiously Defensive

Gold edged down to just above one-week lows. While investors did not show signs of large-scale flight from risk assets, gold’s decline was consistent with the modestly stronger U.S. dollar and shifting expectations for U.S. rate cuts.

Technical posture:

• Prices drifted near the 20-day moving average, with momentum oscillators pointing slightly downward.
• Flows into gold-backed funds slowed, suggesting neutral sentiment rather than an aggressive safe-haven allocation.

Overseas Overnight Markets – Overall Technical and Market Outlook: A Fragile Global Landscape

The dominant theme in global trading overnight was valuation reset and risk recalibration—especially across the technology and AI sectors.

Traders appeared increasingly skeptical that near-term U.S. Federal Reserve rate cuts would materialize as quickly as previously expected, and the shift in expectations exerted pressure across virtually every region.

From a market-structure standpoint:

1. Major indices are testing important technical levels.

• Multiple global indices dropped below their 20-day and 50-day moving averages, often the first sign of a momentum reversal.
• Volume increased across many markets, a trend that often reflects institutional-level de-risking.

2. Volatility is rising but not yet at crisis levels.

• Global VIX-equivalent measures climbed but remained below extremes, suggesting controlled selling rather than panic.

3. Technology valuations remain central to market psychology.

• AI, semiconductor, and high-valuation tech stocks drove much of the overnight decline.
• With major earnings due soon, markets are bracing for potential confirmation—or rejection—of the high expectations priced into the sector.

4. Currencies and commodities are signaling caution but not full retreat.

• Safe havens like the yen strengthened selectively.
• Oil and gold softened, but neither experienced outsized declines.

Conclusion: Markets Await U.S. Session for Direction

Overseas Overnight Markets: Overseas overnight trading on Tuesday, November 18, 2025, delivered a clear message: investors are reassessing positioning after a year of strong gains in technology and AI stocks while navigating uncertainty surrounding global central bank policy.

With U.S. futures showing modest stabilization late in the global session, traders are now watching whether Wall Street can absorb the selling pressure or whether the technology sector correction deepens further.

The next two sessions—driven by U.S. earnings, economic data releases, and continued geopolitical developments—may determine whether global markets stabilize or slide into a broader corrective phase heading toward the final weeks of 2025.

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