TSMC steadies the chips, ECB and Netflix eyed
A look at the day ahead in U.S. and global markets from Mike Dolan
Another impressive earnings beat from Taiwan's chipmaking giant TSMC 2330.TW may help calm this week's tech stock rout, as the earnings season turns toward wobbly megacaps with an update from Netflix on Thursday - just as the European Central Bank meets.
An increasingly volatile week on Wall Street has seen a wild rotation from pricey tech giants to re-invigorated small caps .RUT. As Deutsche Bank notes, the out-performance of the Russell 2000 over the Nasdaq .IXIC in the past five trading days has been the biggest since the former index began in 1979.
But nerves about the chip giants were jangled further by reports of new U.S. curbs on the sector and White House hopeful Donald Trump's doubt about U.S. military defence of Taiwan.
Wall Street's semiconductor index lost more than $500 billion in value on Wednesday in its worst session since 2020 after a report said the United States was mulling tighter restrictions on exports of advanced chip technology to China.
Artificial Intelligence heavyweight Nvidia NVDA.O fell almost 7% during the session.
Although Dutch chipmaking equipment provider ASML ASML.AS, which slumped 13% yesterday, continued to struggle in Europe, TSMC's update may help steady the ship.
U.S. listed shares of TSMC rebounded 3% on Thursday after the firm - a major Apple AAPL.O and Nvidia supplier - beat profit forecasts and said its revenue in the current quarter will increase by as much as 34%.
That, in turn, has seen a rebound in related U.S. stocks, with Nasdaq futures NQcv1 up 0.5% ahead of today's bell and S&500 futures up too. The VIX volatility gauge .VIX has ebbed from its highest level since May.
Streaming bellwether Netflix NFLX.O tops another packed earnings diary later.
Stocks around the world were similarly in foment, with tech-heavy Japanese .N225 and South Korean .KS11 benchmarks falling overnight - with the Nikkei the standout loser with a drop of 2.2%, exaggerated by the week's yen surge.
On the back of a weaker dollar more generally, which sent the DXY index .DXY to four-month lows before stabilising today, dollar/yen JPY= skidded to its lowest in over a month amid jitters around another suspected round of yen-buying Bank of Japan intervention on Wednesday.
BOJ data suggests it may have bought nearly 6 trillion yen ($38.37 billion) last week and traders said this week's moves bore the hallmarks of further intervention - or at least of markets easily spooked by that prospect.
Chinese equities .CSI300, .HSI held in positive territory and the yuan CNH= froze, however, as details of the ruling Communist party's "Third Plenum" started to emerge in the wake of another big miss in second-quarter Chinese GDP growth earlier this week.
A communique issued on Thursday after the meeting said China will enhance the role of market mechanisms in the economy, create a fairer and more dynamic market environment and optimise the efficiency of resource allocation.
European stocks .STOXX also got a foothold, with Britain's FTSE100 .FTSE outstripping the rest, helped by news of slowing UK wage growth in the three months to May and as the pound GBP= slipped from 1-year peaks back under $1.30.
European macro markets now await the ECB's rate decision, where the central bank is expected to keep policy unchanged while signalling its next move is set to be a cut. Markets bet the ECB's second rate cut of the year will come in September and the euro EUR retreated slightly from Wednesday's four-month peak.
A September ECB cut would match where futures markets now firmly place the Federal Reserve's first move, with top Fed officials on Wednesday signalling it's "closer" to cutting rates given inflation's improved trajectory and a labor market in better balance.
In an interview with the Wall Street Journal, New York Fed boss John Williams said: "We're actually going to learn a lot between July and September."
The comments came as U.S. retail and industry readouts for June this week came in better than forecast, pushing the Atlanta Fed's closely-watched "GDPNow" estimate up another couple of notches to 2.7%.
But helped by decent demand at Thursday's 20-year Treasury bond auction, 10-year yields US10YT=RR fell to four-month lows at 4.14%.
Key developments that should provide more direction to U.S. markets later on Thursday:
* European Central Bank policy decision, press conference from ECB President Christine Lagarde; South Africa Reserve Bank policy decision * Philadelphia Federal Reserve's July manufacturing survey, U.S. weekly jobless claims, May TIC data on Treasury holdings and flows * US corporate earnings: Netflix, Blackstone, M&T Bank, Textron, Snap-On, Cintas, Marsh & McLennan, Abbott Laboratories, KeyCorp, DR Horton, Domino's Pizza, PPG, Intuitive Surgical * Fed Board Governor Michelle Bowman, San Francisco Fed President Mary Daly and Dallas Fed chief Lorie Logan all speak
* Donald Trump speaks to the Republican National Convention
* European Parliament votes on new European Commission President
* European political leaders meet at EPC summit in Oxford
* US Treasury auctions 10-year inflation-protected securities, 4-week bills
Playing catch-up in US stocks https://reut.rs/4eZSDDo
US industrial production beats https://reut.rs/4f8fi0w
Housing starts and building permits ahead of forecasts https://reut.rs/3xZiESO
Poll sees slight uptick in the Fed's preferred price gauge https://reut.rs/4bN6ytP
Biden could have razor-thin path to 270 electoral votes https://reut.rs/4cHw3Or
Editing by Christina Fincher
متعلقہ اثاثے
تازہ ترين خبريں
دستبرداری: XM Group کے ادارے ہماری آن لائن تجارت کی سہولت تک صرف عملدرآمد کی خدمت اور رسائی مہیا کرتے ہیں، کسی شخص کو ویب سائٹ پر یا اس کے ذریعے دستیاب کانٹینٹ کو دیکھنے اور/یا استعمال کرنے کی اجازت دیتا ہے، اس پر تبدیل یا توسیع کا ارادہ نہیں ہے ، اور نہ ہی یہ تبدیل ہوتا ہے یا اس پر وسعت کریں۔ اس طرح کی رسائی اور استعمال ہمیشہ مشروط ہوتا ہے: (i) شرائط و ضوابط؛ (ii) خطرہ انتباہات؛ اور (iii) مکمل دستبرداری۔ لہذا اس طرح کے مواد کو عام معلومات سے زیادہ کے طور پر فراہم کیا جاتا ہے۔ خاص طور پر، براہ کرم آگاہ رہیں کہ ہماری آن لائن تجارت کی سہولت کے مندرجات نہ تو کوئی درخواست ہے، اور نہ ہی فنانشل مارکیٹ میں کوئی لین دین داخل کرنے کی پیش کش ہے۔ کسی بھی فنانشل مارکیٹ میں تجارت میں آپ کے سرمائے کے لئے ایک خاص سطح کا خطرہ ہوتا ہے۔
ہماری آن لائن تجارتی سہولت پر شائع ہونے والے تمام مٹیریل کا مقصد صرف تعلیمی/معلوماتی مقاصد کے لئے ہے، اور اس میں شامل نہیں ہے — اور نہ ہی اسے فنانشل، سرمایہ کاری ٹیکس یا تجارتی مشورے اور سفارشات؛ یا ہماری تجارتی قیمتوں کا ریکارڈ؛ یا کسی بھی فنانشل انسٹرومنٹ میں لین دین کی پیشکش؛ یا اسکے لئے مانگ؛ یا غیر متنازعہ مالی تشہیرات پر مشتمل سمجھا جانا چاہئے۔
کوئی تھرڈ پارٹی کانٹینٹ، نیز XM کے ذریعہ تیار کردہ کانٹینٹ، جیسے: راۓ، خبریں، تحقیق، تجزیہ، قیمتیں اور دیگر معلومات یا اس ویب سائٹ پر مشتمل تھرڈ پارٹی کے سائٹس کے لنکس کو "جیسے ہے" کی بنیاد پر فراہم کیا جاتا ہے، عام مارکیٹ کی تفسیر کے طور پر، اور سرمایہ کاری کے مشورے کو تشکیل نہ دیں۔ اس حد تک کہ کسی بھی کانٹینٹ کو سرمایہ کاری کی تحقیقات کے طور پر سمجھا جاتا ہے، آپ کو نوٹ کرنا اور قبول کرنا ہوگا کہ یہ کانٹینٹ سرمایہ کاری کی تحقیق کی آزادی کو فروغ دینے کے لئے ڈیزائن کردہ قانونی تقاضوں کے مطابق نہیں ہے اور تیار نہیں کیا گیا ہے، اسی طرح، اس پر غور کیا جائے گا بطور متعلقہ قوانین اور ضوابط کے تحت مارکیٹنگ مواصلات۔ براہ کرم یقینی بنائیں کہ آپ غیر آزاد سرمایہ کاری سے متعلق ہماری اطلاع کو پڑھ اور سمجھ چکے ہیں۔ مذکورہ بالا معلومات کے بارے میں تحقیق اور رسک وارننگ ، جس تک رسائی یہاں حاصل کی جا سکتی ہے۔
