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Cooling US prices lift technology shares

Signs of easing pipeline inflation reinforced expectations that the Federal Reserve (Fed) will keep rates steady in September, helping Wall Street advance on Thursday. Technology shares led the gains in the US, while European stocks finished the session mixed. Asian equity markets traded unevenly on Friday as advances in Japan and South Korea contrasted with losses elsewhere in the region.

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

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US producer prices were unchanged month-on-month in July, following a revised 0.1% decline in June, according to data released on Thursday. Services prices rose by 0.2%, but a 0.7% fall in goods prices kept the overall index flat and below economists’ expectations. Annual producer-price inflation eased to 4.7% from 5.5%, although late-July oil-price increases were probably not captured in the data. The report, alongside recent labour-market weakness and moderate consumer inflation, supports the case for the Fed to leave interest rates unchanged in September.

Asian shares rise on US inflation

Asian equities were mixed on Friday. The changes in expectations for the Fed's rate path supported stocks, with Korea’s KOSPI gaining 2% as chipmakers advanced, while Japan’s Nikkei 225 rose 0.5%; Hong Kong’s Hang Seng Index fell 0.9%. Elsewhere, Australia’s S&P/ASX 200 declined 0.9%, mainland China’s CSI 300 fell 0.2% and India’s Nifty 50 was down 0.3%.

US technology stocks extend gains

US technology shares continued their advance on Thursday as easing inflation and interest-rate concerns lifted the Nasdaq-100 1.2% to 30,084.50 points. The S&P 500 briefly reached a record high before closing 0.7% higher at 7798.99 points, while the Dow Jones Industrial Average added 0.1% to 53,839.99 points. Cisco fell 8.4% despite strong results after its AI outlook disappointed investors, whereas Workday surged 17.8% on reports that Silver Lake is considering acquiring the finance and human-resources software provider.

European equities close mixed

European equity markets ended mixed on Thursday as investors grew more cautious after strong gains earlier in August. The Euro Stoxx 50 rose 0.2% to 6546.95 points, while the Swiss Market Index also gained 0.2% to 14,475.13 points as Dutch payments provider Adyen surged 16.4% after raising its revenue forecast following strong first-half growth and acquisitions. Shipping company Moller-Maersk gained more than 9% after again upgrading its full-year targets. Mining stocks were the weakest sector, with Antofagasta, Rio Tinto and Fresnillo dropping between 4.7% and 6.8%.

UK economy expands unexpectedly in June

UK GDP increased by 0.3% month-on-month in June after stagnating in May, according to data released on Thursday, exceeding economists’ expectations. Growth was supported by easing energy-price pressures during the Gulf ceasefire, activity related to the men’s football World Cup and warm weather. Services output rose by 0.4%, outweighing declines of 0.2% in industrial production and 0.1% in construction. The economy expanded by 0.4% in the second quarter, down from 0.6% in the first, while renewed energy pressures and potential tax increases are expected to restrain growth in the coming months.

Corporate and economic calendar

Corporate news in focus: There is no major corporate news scheduled today.

Economic data in focus: French Consumer Price Index (08:45), Swiss gross domestic product (09:00), euro-area gross domestic product (11:00), EU trade balance (11:00), US retail sales (14:30) and University of Michigan Consumer Sentiment Index (16:00).

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Editor: Alessandro Fezzi
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