LGT Navigator

Chip recovery meets renewed inflation worries

A rebound in chipmaker shares lifted most Asian markets on Friday, while Indonesian stocks plunged on a proposed MSCI downgrade. US equities rose on Thursday as Treasury yields fell despite strong producer price data. European data showed faster French inflation, a monthly rise in Swiss producer prices and slower UK growth alongside a wider trade deficit; Swiss shares gained, but euro-area stocks slipped. Investors will turn to Friday’s releases, including euro-area inflation, for clues on interest rates.

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

Asian stocks rebound despite Indonesian selloff

Asian stocks rebounded on Friday as chipmakers recovered. Korea’s KOSPI gained 4% after falling nearly 8% on Thursday, while Japan’s Nikkei 225 rose 2%. Indonesia’s Jakarta Composite bucked the trend, dropping around 11% after MSCI proposed downgrading the country’s market classification over transparency concerns. Beyond equities, Brent crude oil futures fell 0.5% to USD 105.37 per barrel, while West Texas Intermediate (WTI) futures lost 0.6% to USD 97.34 per barrel. Gold was little changed at around USD 4170 per ounce, and bitcoin rose 2% to around USD 82,300.

US producer prices and New York manufacturing climb

US retail sales rose 0.8% in September, down from a revised 1.3% in August, as gasoline prices climbed 7.1%, data released on Thursday showed. Sales excluding cars, fuel, building materials and restaurants grew just 0.1%, while producer prices rose 1.3% after a 0.5% increase in August. Producer prices were 6.3% higher year on year. The New York Fed’s manufacturing index climbed to 25.5 in October from 7.6 in September, its highest since 2021.

US stocks gain as Treasury yields fall

US stocks rose on Thursday, with the Dow up 1.1% to 52,177.69 points and the S&P 500 gaining 0.3%. The ten-year Treasury yield fell 12.8 basis points to 5.061% amid concerns about debt-funded artificial intelligence investment. The Nasdaq-100 was little changed, while AI cloud provider CoreWeave rebounded nearly 6%.

Swiss producer prices and French inflation rise

Switzerland’s Producer and Import Price Index rose 0.3% month on month to 100.7 points in September, according to data released on Thursday, but remained 0.2% below its level a year earlier. French inflation accelerated to 3.4% year on year from 2.6% in August, its highest rate since 2024. In equity markets, Switzerland’s SMI gained 1.6% for its fifth consecutive rise, supported by defensive shares, while the Euro Stoxx 50 fell 0.4%.

UK growth slows as trade deficit widens

UK GDP grew 0.1% month on month in August, down from 0.4% in July, according to figures released on Thursday. Industrial production rose 0.8%, while services output was flat. The trade deficit widened to GBP 8 billion in the three months to August from GBP 6.6 billion in the preceding three months.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from Schneider Electric.

Economic data in focus: Italian Consumer Price Index (11:00), euro-area Consumer Price Index (11:00), euro-area trade balance (11:00), Italian trade balance (12:00) and US manufacturing production (15:15).

LGT helps you make informed investment decisions

Global economic and market trends at a glance

You can also follow us on Facebook or LinkedIn – or visit Insights and discover interesting background articles. If you have questions, a consultant from the bank will be happy to help you.

Imprint
Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.