XM does not provide services to residents of the United States of America.

TSMC steadies chip ship, ECB set to ease



<html xmlns="http://www.w3.org/1999/xhtml"><head><title>MORNING BID AMERICAS-TSMC steadies chip ship, ECB set to ease</title></head><body>

A look at the day ahead in U.S. and global markets from Mike Dolan


Tech-heavy stock markets are set to breathe a sigh of relief on Thursday as the world's largest chipmaker beat the street and eased gnawing doubts about semiconductor demand worldwide and jitters about the wider artificial intelligence theme.

After a cloudy outlook from Europe's ASML ASML.AS earlier this week sideswiped chip stocks everywhere, Taiwan Semiconductor Manufacturing 2330.TW said on Thursday it expects sustained growth as it reported a forecast-beating 54% jump in profits and soaring demand for chips used in AI.

TSMC, the dominant producer of advanced chips used in AI applications and whose customers include Apple AAPL.O and Nvidia NVDA.O, has become a bellwether for the AI story and its shares jumped 6% in Frankfurt after the earnings report.

Nvidia shares were also up another 2% in out of hours trade.

TSMC is spending billions of dollars building new factories overseas, including $65 billion on three plants in the U.S. state of Arizona, although it has said most manufacturing will remain in Taiwan.

With Wall Street index futures ESc1, NQcv1 higher again ahead of Thursday's bell, the news from Taiwan may well lift both the S&P500 .SPX and Nasdaq .IXIC back to record highs.

Helped by a strong earnings season so far for the big U.S. investment banks, the wider market raced ahead on Wednesday. The small cap Russell 2000 .RUT clocked it best close in almost three years and Dow Jones blue chips .DJI set another record close after the index secured a foothold above the 43,000 mark.

Streaming giant Netflix NFLX.O tops the diary later, with investors looking for signs its nascent ad revenue business is accelerating. That's important as it's set to report about 4 million new subscribers - its lowest addition in six quarters following a boom on its password-sharing crackdown.

Netflix shares are up 44% for the year so far.

With the European Central Bank set to deliver its third interest rate cut of the year later on Thursday - its first back-to-back cut in 13 years - the broader interest rate picture was supportive too.

The euro EUR= fell to its lowest level since early August against a generally stronger dollar .DXY ahead of the ECB decision.

European stocks .STOXXE pushed higher after a shaky week of disappointments from ASML ASMl.AS and luxury goods maker LVMH LVMH.PA, both hit by wobbling Chinese demand and a brewing trade war between Brussels and Beijing.

China's markets .CSI300 underperformed once again and the offshore yuan CNH= touched its weakest level in almost two months as a lack of fresh stimulus from a closely-watched housing policy briefing left some investors disappointed.

China will expand a "white list" of housing projects eligible for financing and increase bank lending for such developments to 4 trillion yuan ($562 billion), Minister of Housing and Urban-Rural Development Ni Hong said.

But analysts said the details just fleshed out previously announced support and some of the numbers underwhelmed.

Property stocks traded in China .CSI000952 and Hong Kong .HSMPI tumbled 7.9% and 6.7% respectively - reversing gains of the previous day.

China reports third-quarter GDP numbers on Friday - and the annual growth rate over the three months is expected to have slowed to 4.5% from 4.7% the prior quarter.

Back on Wall Street, Treasuries were steady, with the 10-year yield retaining a 4% handle US10YT=RR ahead of a stream of retail, industrial and weekly jobless data for last month.

With the labor market under the microscope at the Federal Reserve as it mulls its next interest rate move, distortions in jobless claims due to recent storms and strikes have made the number difficult to read.

Still, another quarter-point Fed rate cut next month is almost fully priced in futures markets and there was encouraging news on the inflation front at home and abroad.

U.S. import prices fell by the most in nine months in September amid decreases in the costs of energy products and food.

And despite Middle East tensions, China-related global demand worries for next year have kept a lid on oil, leaving U.S. crude CLc1 clinging on to $70 per barrel and down almost 20% on this time last year.

In deals news, shares of travel booking website Expedia Group EXPE.O jumped 8% in after-hours trading after the Financial Times reported that ride-hailing giant Uber UBER.N explored a possible bid for the company. Uber shares were down about 2%.


Key developments that should provide more direction to U.S. markets later on Thursday:


* European Central Bank policy decision and press conference with ECB President Christine Lagarde

* US corporate earnings: Netflix, Snap-on, Intuitive Surgical, Blackstone, Travelers, Truist, M&T, Elevance Health, Marsh & McLennan, Huntington Bancshares, KeyCorp

* US September retail sales, industrial output, weekly jobless claims, October Philadelphia Fed business survey, Oct NAHB housing index, August business/retail inventories, August TIC data on Treasury holdings

* Federal Reserve Bank of Chicago President Austan Goolsbee

* European Commission President Ursula von der Leyen and European Council President Charles Michel holds a press conference after European Union summit

* U.S. President Joe Biden visits Germany


Netflix's gains from password-sharing crackdown taper off https://tmsnrt.rs/46uvEf1

ECB interest rates and rate expectations https://reut.rs/4f8LBf4

US import and export prices and the dollar https://reut.rs/3Uc5f1k

US retail sales expected to have grown faster in September https://reut.rs/4gX3LC6

Japan's exports fall for first time in 10 months on China, US slowdown https://reut.rs/4h8tffO


mike.dolan@thomsonreuters.com
Editing by Christina Fincher

</body></html>

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.