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Oil retreat lifts equities ahead of Nvidia

Falling oil prices eased fears of a fresh inflation shock on Wednesday, helping Asian technology shares recover after Wall Street closed higher on Tuesday. South Korean and Chinese equities led regional gains, while Japanese and Hong Kong stocks also advanced. Attention now turns to Nvidia’s quarterly results due after the US close on Wednesday, with its outlook for AI-related demand likely to determine whether the recent rebound in chip shares can extend.

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

Stock chart
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Oil prices declined on Wednesday after US measures against Iran proved less severe than markets had expected, easing fears of an immediate military escalation that could disrupt Gulf supplies. Brent crude oil futures fell 1.8% to USD 85.72 per barrel, while West Texas Intermediate (WTI) futures declined 2.1% to USD 80.67. Iran and Oman are also discussing a temporary shipping route and mine-clearance operation in the Strait of Hormuz, ahead of a possible longer-term arrangement for the waterway.

Asian shares rebound led by technology

Asian stock markets rose on Wednesday, recovering from last week’s technology-led sell-off as lower oil prices and declining US Treasury yields improved risk appetite. Korea’s Kospi gained 1.3%, Japan’s Nikkei 225 climbed 0.7%, Hong Kong’s Hang Seng Index advanced 0.7%, while mainland China’s CSI 300 added 0.9%. Chipmakers led the recovery, with SK Hynix and Samsung Electronics rising, while Chinese technology stocks including SMIC, Xiaomi and Alibaba also advanced.

US stocks rise as yields decline

US equities gained on Tuesday as lower oil prices and bond yields supported sentiment, while chip stocks rebounded ahead of Nvidia’s earnings release. The Dow Jones Industrial Average rose 0.3% to 53,577.40 points, the S&P 500 added 0.3% to 7677.28, and the Nasdaq-100 advanced 0.6% to 29,209.23 points. Nvidia climbed 2.2%, while AMD and Marvell Technology each gained almost 5%. US Treasury yields slipped on Tuesday, with the two-year yield trading around 4.2% and the ten-year yield around 4.6%.

German business confidence strengthens

Germany’s ifo Business Climate Index rose to 88.8 points in August from 86.7 in July, according to survey data released on Tuesday. Companies reported better current conditions and markedly brighter expectations, with sentiment improving across manufacturing, services, trade and construction. The more upbeat outlook was reinforced by detailed GDP data showing that the German economy expanded by 0.3% in the second quarter, slightly above the initial estimate of 0.2% and following growth of 0.4% in the first quarter. Exports drove the expansion, rising by 2% from the previous quarter, while fixed investment declined by 0.2% and consumption increased by just 0.1%. The Euro Stoxx 50 rose 0.2% to 6457.75 points, while Germany’s DAX gained 0.6% to 26,266.14 points. The Swiss Market Index advanced 0.5% to 14,525.29 points.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from Nvidia and Salesforce.

Economic data in focus: US personal consumption expenditures (14:30), US gross domestic product (14:30) and US durable goods orders (14:30).

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