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Chip rebound sets stage for tech earnings

A sharp recovery in semiconductor shares drove US equities higher on Tuesday as investors positioned for quarterly reports from Alphabet and Tesla due on Wednesday. Asian trading was mixed on Wednesday, with a strong advance in Korea’s Kospi contrasting with losses in Hong Kong and modest declines in mainland Chinese equities. Oil prices continued to rise amid renewed Middle East concerns, while gold was trading around USD 4130 per ounce on Wednesday, up sharply.

  • Data
  • Autore Shane Strowmatt, Senior Investment Writer
  • Tempo di lettura 5 minuto

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Asian tech equities advanced on Wednesday after US technology shares lifted Wall Street on Tuesday, with Korea’s Kospi rising 2.1% as Samsung Electronics and SK Hynix led gains in chipmakers. Japan’s Nikkei 225 was trading slightly higher, while the country’s exports increased 19.3% year-on-year in June, supported by demand for artificial intelligence-related semiconductor equipment and a weaker yen. Hong Kong’s Hang Seng Index was down 1.2%, while mainland China’s CSI 300 was trading 0.2% lower.

US chip stocks rebound sharply

US equities rose on Tuesday as semiconductor shares recovered strongly, supported by reports that Taiwan Semiconductor Manufacturing Company may raise chip prices by up to 10% next year amid higher production-material costs. The Nasdaq 100 gained 1.9% to close at 29,155.18 points, while the S&P 500 rose 0.9% to 7509.20 points and the Dow Jones Industrial Average added 0.7% to 52,224.64 points. The Philadelphia Semiconductor Index climbed 5.2%, with several chip-related stocks posting substantial gains, while TSMC’s US-listed shares advanced 5.6%.

German ZEW sentiment rises sharply

German economic expectations improved markedly in July, with the ZEW Indicator of Economic Sentiment climbing 15.8 points to 26.3 points on Tuesday, while the assessment of current conditions rose 3.4 points to minus 77.6 points. ZEW attributed the stronger outlook partly to reforms supporting export-oriented sectors and domestic demand, although the Iran conflict and oil-price uncertainty remain risks to the recovery. Expectations for the euro area increased by 13.9 points to 23.4 points, while its current-conditions gauge improved by 5.7 points but remained negative at minus 37.7 points. The Euro Stoxx 50 gained 0.9%, while Germany’s DAX rose 0.7% on Tuesday.

Swiss exports rebound in second quarter

Swiss exports rose 8.8% in the second quarter, following a 3.9% decline in the first quarter, data released on Tuesday showed. Export values reached CHF 73.2 billion, the third-highest level on record, although volumes increased only 0.6%, indicating subdued underlying momentum. Chemical and pharmaceutical exports drove the rebound, rising 15.2%, while shipments to the US climbed 21.5% and exports to Europe were broadly unchanged. Imports increased 4.9% to CHF 59.3 billion, after falling 3.6% in the first quarter, leaving a trade surplus of CHF 13.9 billion. The Swiss Market Index increased 0.3% on Tuesday.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from Alphabet, AT&T, Banco Santander, Iberdrola, Lonza, Philip Morris, ServiceNow, Tesla, and Texas Instruments.

Economic data in focus: UK Consumer Price Index (08:00), US crude oil inventories (16:30).

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Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.