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US inflation surprise compounds chip sell-off

US consumer prices rose more than the market had expected in September, with annual inflation accelerating to 3.7% from 3.4%. The surprise raised market expectations of a Federal Reserve (Fed) rate increase and weighed on technology shares on Wall Street on Wednesday. Chip stocks then led sharp declines in South Korea and Japan on Thursday, contrasting with gains in European equities the previous day. Among Thursday’s key events are Taiwan Semiconductor’s quarterly results, UK GDP, and US retail sales and producer-price data.

  • Data
  • Autore Amira Scherz, Junior Investment Writer
  • Tempo di lettura 5 minuto

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Asian shares slump on chip sell-off

South Korea’s KOSPI was down 7.5% in Thursday trading, while Japan’s Nikkei 225 fell 4.4%, as chip shares led losses across Asia. SK Hynix dropped 11.4% and Samsung Electronics lost 10.7% amid concerns about Chinese competition and artificial intelligence valuations. Brent crude oil futures fell 1.6% to USD 104.39 per barrel, while West Texas Intermediate (WTI) futures lost 1% to USD 94.13 per barrel. Gold gained 1% to around USD 4150 per ounce, while bitcoin declined 2.7% to around USD 81,300.

US inflation weighs on Wall Street

US consumer prices rose 0.6% in September, up from 0.4% in August, data released on Wednesday showed; annual inflation accelerated to 3.7% from 3.4%, largely because of higher petrol prices. Core inflation rose to 2.6% from 2.4%, while the Fed’s Beige Book noted wider price pressures, strengthening market expectations of a rate rise this month. The Nasdaq-100 fell 2% to 29,950.82 points and the S&P 500 lost 1.1% to 7718.94 points.

European stocks rise as ECB monitors inflation

European stocks rose on Wednesday, supported by strong Chinese trade data, while European Central Bank (ECB) President Christine Lagarde said higher energy prices had not yet spread to broader euro-area inflation. The Euro Stoxx 50 gained 0.4% to 6190.37 points, and Switzerland’s SMI rose 1.5% to 14,129.93 points, led by health care shares. The ECB is watching for wider price pressures, with markets expecting another rate increase in December.

Third-quarter results diverge

Dutch chip-equipment maker ASML raised the lower end of its 2026 sales forecast on Wednesday after third-quarter profit more than doubled to EUR 4.96 billion. Bank of America’s profit fell 17% as trading disappointed, while Morgan Stanley beat market expectations on strong equities trading. US asset manager BlackRock recorded quarterly net inflows of USD 205 billion.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from Charles Schwab, Marsh McLennan, Nordea Bank, Pernod Ricard, Prologis, Taiwan Semiconductor, and VAT Group.

Economic data in focus: UK gross domestic product (08:00), UK manufacturing production (08:00), UK trade balance (08:00), Swiss Producer and Import Price Index (08:30), French Consumer Price Index (08:45), US retail sales (14:30), US Producer Price Index (14:30), Philly Fed Manufacturing Index (14:30), US weekly initial jobless claims (14:30), Empire State Manufacturing Index (14:30).

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