Live Updates: AI-Driven Market Selloff Deepens, Keeping Investors Nervous

South Korea’s KOSPI plunged nearly 4%, while data centre operator Elice saw its shares tumble about 30% in a weak IPO debut, adding to concerns across global markets.

Strive’s SATS preferred security begins Nasdaq trading

Strive’s (ASST) SATS preferred security has commenced trading on Nasdaq following its initial public offering.

The security traded at $85, below its $90 IPO price. At that level, its 15% coupon offers an effective yield of more than 17%.

U.S. housing starts decline amid elevated interest rates

Fresh government data showed further weakness in the U.S. housing sector as higher borrowing costs continued to weigh on activity.

Housing starts dropped 5.2% in September to a seasonally adjusted annual rate of 1.221 million, falling well short of economists’ expectations of 1.3 million. August’s rate was 1.288 million.

Building permits also declined, slipping to 1.4 million from 1.403 million in August. The result nevertheless came in slightly above the 1.39 million forecast.

The latest figures followed a report from the National Association of Home Builders on Monday, which showed builder confidence at its lowest level since 2012.

French-German bond spread nears levels last seen in 2011

French government bonds came under renewed pressure on Tuesday, widening the yield difference between France and Germany to around 153 basis points.

France’s 10-year OAT yield climbed 3.4 basis points to 4.956%, while Germany’s 10-year Bund yield fell 3 basis points to 3.43%. The spread approached a new high for the current cycle and reached its widest level since Europe’s sovereign debt crisis in 2011.

European Central Bank policymaker Olli Rehn addressed the issue while testifying before Finland’s parliament, acknowledging that French bond spreads had widened “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.”

France’s CAC 40 index also extended its losses, falling 0.8% on Tuesday. The benchmark has declined around 12% since reaching a peak two months earlier.

Bitget targets Thailand through planned exchange acquisition

Cryptocurrency exchange Bitget plans to purchase GMO-Z, a licensed digital asset exchange and brokerage headquartered in Bangkok, as it expands across Southeast Asia. The financial terms of the deal were not disclosed.

The acquisition is expected to be completed 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 stakes to BTGT Management or its designated entity when the transaction closes.

Bitget intends to make its trading platform available to Thai users following completion. The deal remains subject to regulatory approval and other conditions.

Switzerland authorises its first Bitcoin-only ETF

Switzerland’s financial regulator, FINMA, has approved the country’s first Bitcoin exchange-traded fund without identifying the issuer.

Switzerland was the first jurisdiction to approve cryptocurrency exchange-traded products (ETPs). However, regulations requiring ETFs to hold more than one asset had prevented Bitcoin-only funds from receiving ETF status, leaving them classified as ETPs.

FINMA has now approved an exemption for ETFs holding only Bitcoin, pointing to the asset’s “long trading history and particularly high trading volume compared with other cryptocurrencies.”

AI stock declines deepen as market anxiety persists

Investors remained cautious as the sell-off in AI-related stocks intensified. South Korea’s KOSPI dropped almost 4%, while Elice shares fell around 30% in their first trading session, highlighting concerns about the valuations of AI infrastructure companies.

U.S. pre-market trading also weakened. CoreWeave (CRWV) fell 4%, Cipher Digital (CIFR) declined 2%, and IREN (IREN) lost 3%. The Invesco QQQ ETF also moved lower as technology stocks faced continued selling pressure.

Bitcoin edged down over the previous 24 hours but stayed above $81,000. Gold slipped nearly 1% to slightly above $4,110 per ounce, while Brent and West Texas Intermediate crude each advanced another 2%.

Long-dated U.S. Treasuries attracted some defensive demand amid the market uncertainty. The iShares 20+ Year Treasury Bond ETF (TLT) rose 0.5%.