🗓 Monday, August 11
► Europe steady as chip levy headlines offset early optimism
European equities traded mixed, with the Stoxx 600 barely changed at 547.00 (flat) as traders weighed early optimism against sector-specific headwinds. The newly agreed 15% US levy on China AI chip revenues hit sentiment in the tech space, though broader moves were muted. The DAX slipped -0.10%, CAC -0.23%, while the FTSE 100 bucked the trend, rising +0.30%. Pharma saw selective strength after Novartis reported late-stage trial success in an autoimmune treatment, while Orsted plunged up to 29% in Copenhagen on a $9.4B rights issue. Bond yields were stable (Bund 10Y at 2.691%), EUR/USD eased to below 1.162, and GBP/USD fell to 1.341.
► US futures edge up as traders eye inflation data and chip sector drag
Wall Street futures posted modest gains – S&P 500 +0.1%, Dow +0.15%, Nasdaq flat – as focus turned to Tuesday’s CPI and Thursday’s PPI releases, both critical for shaping Fed rate cut expectations. The market is pricing in >85% odds of a September quarter-point cut. Nvidia (-1% premarket) and AMD (-1.4%) fell after confirming the 15% China revenue payment arrangement for export licenses. Apple extended last week’s rally, while Paramount jumped on a $7.7B UFC rights deal. Treasury yields were steady (10Y at 4.27%).
► Asia mostly positive with global chip jitters meet local resilience
Asian markets showed a patchwork performance, with Japan’s Nikkei leading gains (+1.85% to 41,820) as exporters benefited from a weaker yen (USD/JPY at 147.90). Hang Seng added +0.19%, Shanghai +0.34%, Shenzhen +1.46%, while Kospi lagged at -0.10%. Tech sentiment was cautious after US chip levy headlines, but lithium-linked stocks surged after CATL halted operations at a major Chinese mine. India’s Nifty 50 rose +0.91% on strong banking sector earnings, while Australia’s ASX 200 gained +0.43%.
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