S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
Deutsche Bank strategists highlight that the S&P 500 closed just below its record high as US CPI data reduced urgency for further Federal Reserve hikes. Front-end Treasuries rallied and semiconductor strength supported equities, while volatility fell to its lowest level since January. They note that AI-related names and broader US indices continue to benefit from the benign inflation backdrop.
US equities buoyed by softer Fed fears
“Meanwhile, US equities were the clearer beneficiaries as concerns over imminent Fed hikes eased. The S&P 500 (+0.26%) closed just -0.12% below its record high from August 7, while its equal-weighted equivalent (+0.16%) reached a new high of its own. Both the Nasdaq (+0.54%) and the Russell 2000 (+0.61%) saw larger gains, while the Mag-7 (-1.05%) lost ground. With a CPI risk event being avoided, there was also a sense of an August lull taking hold, as the VIX volatility index fell to its lowest level since January (-0.73pts to 14.55pts).”
“The main equity excitement remained in semiconductors, with the Philadelphia Semiconductor Index up +2.49%. That leaves the index up +75.1% year-to-date and +18.7% from its low on July 29 though still -15.3% beneath its June record.”
“CoreWeave (+19.28%) and Super Micro (+19.02%) both soared yesterday following their upbeat outlooks on Tuesday evening. Nebius (+34.14%) then added to the positive mood before yesterday’s US open, reporting a +454% year-on-year rise in revenue to $582m, alongside stronger-than-expected margins.”
“Tencent’s results after the Hong Kong close also offered a positive revenue message out of China, with +11% sales growth, though its shares are down -3.81% this morning as profits were weaker-than-expected as the company stepped up AI capex spending. As a result, the Hang Seng (+0.05%) is broadly flat.”
“Looking at the broader market moves in Asia this morning, the subdued US CPI release and continued tech-rally are also propelling indices forward. South Korea’s KOSPI (+4.46%) has now recovered from its late July lows, putting the index into a technical bull market. Elsewhere, the Nikkei 225 (+1.75%) CSI 300 (+0.49%) and Shanghai Composite (+0.42%) are also advancing. Only the S&P/ASX 200 (-0.39%) has pulled back this morning. “
“European stock markets were softer yesterday. The Stoxx 600 fell -0.16%, ending a run of 7 consecutive gains. The CAC 40 lost -0.46%, with the DAX (-0.23%) and FTSE 100 (-0.10%) also slipping. Nevertheless, the major European indices remain very close to recent records, with all four indices within 1% of their highs”
