Futures are mixed as chip stocks recover partially from Tuesday's rout and as traders looked ahead to more major earnings. As of 8:00am ET, S&P futures are up 0.1%, a day after a profit warning from Dutch chip equipment maker ASML rattled sentiment, and boosted by an across the board beat from Morgan Stanley which jumps 3%, Nasdaq 100 futs are up 0.2% with Nvidia rising 0.8% after sinking nearly 5% on Tuesday. Global equities trade mostly lower on follow through after ASML’s booking miss weighed on Semis and in turn broader markets. Bond yields are lower with the 10Y yield dropping to just above 4.00%, the Bloomberg dollar index is unchanged. Commodities are mixed: precious metals are higher, while base metals are lower; oil edged higher as Israel said it was keeping options open in how to attack Iran.
In premarket trading, Morgan Stanley shares jumped 3.4% after the bank beat expectations across the board. ASML slid another 4% on continued follow through of light 3q orders; UAL is down 0.6% after better revs/eps/$1.5bn buyback; JB Hunt Transport shares rose 7% in US premarket trading, after the logistics company’s third-quarter profit topped the analyst estimates. Among the biggest laggards was Qualcomm Inc., which fell on reports that it will likely postpone its offer to buy Intel Corp. until after the US presidential election.
ASML’s slide Tuesday sent ripples across the industry, resulting in more than $420 billion of market value loss for an index of US-traded chip stocks and the largest Asian peers. While the weakness in names like Nvidia and ASML has an impact on the broader market, Peter Fitzgerald, chief investment officer for macro and multi-asset at Aviva Investors, pointed to the strength of demand for artificial intelligence as well as supportive central bank policy.
The pound fell 0.6% below $1.30 for the first time since August and money markets bolstered wagers on Bank of England rate cuts after UK inflation slipped below the BOE’s 2% target for the first time since April ’21. London’s FTSE 100 outperformed European stock indexes and yields on UK gilts tumbled. China announced that their housing minister along with officials from the MOF and PBOC will hold a press conference tomorrow which will likely provide details on new property support measures.
Europe’s Stoxx 600 index retreated 0.4% after ASML extended losses and fell another 3.5% after yesterday’s 15.6% decline. LVMH and Salvatore Ferragamo SpA led the retreat in luxury stocks after weak updates, both slumping as much as 7%. Major European markets are mixed: UK stocks outperform as a result of lower than expected CPI print, with the FTSE 100 rising 0.7% as most of its regional peers decline.
Earlier in the session, a key Asian index declined to its lowest level in three weeks, driven by losses in chipmaker shares. Chinese stocks fell. The MSCI Asia Pacific Index fell as much as 1%, with TSMC, Tokyo Electron and Samsung Electronics among the biggest contributors to the decline. Their weakness weighed on the tech-heavy markets of South Korea, Taiwan and Japan. Semiconductor companies faced selling pressure after ASML Holding NV missed order estimates and cut its outlook for next year, sparking a global rout in the sector. A Bloomberg gauge of chipmakers in Asia fell as much as 3.6%.
Chinese stocks faced another day of big swings, with the benchmark CSI 300 Index ending lower for the second straight day and coming close to entering a correction. A lack of clarity over the extent of fiscal stimulus, as well as muted economic data, has cooled sentiment toward the market. On the other hand, a Bloomberg gauge of China’s property shares surged as much as 8.3% as markets prepared for a joint news conference to be held by government officials including the housing minister and central bank on Thursday.
In FX, the Bloomberg Dollar Spot Index was steady; the pound falls 0.4% and earlier dipped below $1.30 for the first time since Aug. 20 after UK inflation slowed more than expected in
Futures are mixed as chip stocks recover partially from Tuesday's rout and as traders looked ahead to more major earnings. As of 8:00am ET, S&P futures are up 0.1%, a day after a profit warning from Dutch chip equipment maker ASML rattled sentiment, and boosted by an across the board beat from Morgan Stanley which jumps 3%, Nasdaq 100 futs are up 0.2% with Nvidia rising 0.8% after sinking nearly 5% on Tuesday. Global equities trade mostly lower on follow through after ASML’s booking miss weighed on Semis and in turn broader markets. Bond yields are lower with the 10Y yield dropping to just above 4.00%, the Bloomberg dollar index is unchanged. Commodities are mixed: precious metals are higher, while base metals are lower; oil edged higher as Israel said it was keeping options open in how to attack Iran.
In premarket trading, Morgan Stanley shares jumped 3.4% after the bank beat expectations across the board. ASML slid another 4% on continued follow through of light 3q orders; UAL is down 0.6% after better revs/eps/$1.5bn buyback; JB Hunt Transport shares rose 7% in US premarket trading, after the logistics company’s third-quarter profit topped the analyst estimates. Among the biggest laggards was Qualcomm Inc., which fell on reports that it will likely postpone its offer to buy Intel Corp. until after the US presidential election.
ASML’s slide Tuesday sent ripples across the industry, resulting in more than $420 billion of market value loss for an index of US-traded chip stocks and the largest Asian peers. While the weakness in names like Nvidia and ASML has an impact on the broader market, Peter Fitzgerald, chief investment officer for macro and multi-asset at Aviva Investors, pointed to the strength of demand for artificial intelligence as well as supportive central bank policy.
The pound fell 0.6% below $1.30 for the first time since August and money markets bolstered wagers on Bank of England rate cuts after UK inflation slipped below the BOE’s 2% target for the first time since April ’21. London’s FTSE 100 outperformed European stock indexes and yields on UK gilts tumbled. China announced that their housing minister along with officials from the MOF and PBOC will hold a press conference tomorrow which will likely provide details on new property support measures.
Europe’s Stoxx 600 index retreated 0.4% after ASML extended losses and fell another 3.5% after yesterday’s 15.6% decline. LVMH and Salvatore Ferragamo SpA led the retreat in luxury stocks after weak updates, both slumping as much as 7%. Major European markets are mixed: UK stocks outperform as a result of lower than expected CPI print, with the FTSE 100 rising 0.7% as most of its regional peers decline.
Earlier in the session, a key Asian index declined to its lowest level in three weeks, driven by losses in chipmaker shares. Chinese stocks fell. The MSCI Asia Pacific Index fell as much as 1%, with TSMC, Tokyo Electron and Samsung Electronics among the biggest contributors to the decline. Their weakness weighed on the tech-heavy markets of South Korea, Taiwan and Japan. Semiconductor companies faced selling pressure after ASML Holding NV missed order estimates and cut its outlook for next year, sparking a global rout in the sector. A Bloomberg gauge of chipmakers in Asia fell as much as 3.6%.
Chinese stocks faced another day of big swings, with the benchmark CSI 300 Index ending lower for the second straight day and coming close to entering a correction. A lack of clarity over the extent of fiscal stimulus, as well as muted economic data, has cooled sentiment toward the market. On the other hand, a Bloomberg gauge of China’s property shares surged as much as 8.3% as markets prepared for a joint news conference to be held by government officials including the housing minister and central bank on Thursday.
In FX, the Bloomberg Dollar Spot Index was steady; the pound falls 0.4% and earlier dipped below $1.30 for the first time since Aug. 20 after UK inflation slowed more than expected in
