Market Summary
Global Equities Pull Back as Chip Stocks Weigh on Markets: Global equities eased from record highs overnight as weakness in semiconductor stocks prompted investors to reassess valuations following the recent AI-driven rally. In the U.S., memory chipmakers came under pressure after earnings, with Sandisk falling 8% in post-market trading and Western Digital dropping 12%. Asian markets also weakened sharply, with South Korea's KOSPI declining 4.5% as SK Hynix and Samsung Electronics led losses, highlighting continued caution across the semiconductor sector.
Gold Climbs to Multi-Month High as Rate Expectations Ease: Spot gold continued its strong advance, rising 0.45% this morning to $4,266 an ounce after gaining 4.16% yesterday. The rally has been supported by expectations that lower oil prices following progress toward reopening the Strait of Hormuz will reduce inflationary pressures, allowing the Federal Reserve greater flexibility to hold interest rates steady. Lower bond yields also continued to underpin demand for the non-yielding precious metal.
Oil Extends Decline as Hormuz Reopening Progresses: Brent crude slipped a further 0.26% this morning to $79.24 per barrel after Iran announced it had reached an agreement with Oman on a proposed shipping route through the Strait of Hormuz, marking another step toward reopening the vital waterway. Investors continue to monitor developments closely, with expectations that increased supply and improved shipping access could help keep energy prices contained and further ease global inflation concerns.
Markets Await US Labour Data While Yen Stabilises: Investor focus now turns to today's U.S. Initial Jobless Claims and Nonfarm Productivity data for fresh insight into the strength of the U.S. economy and the outlook for Federal Reserve policy. Meanwhile, USD/JPY remained steady around the 157.8 level following last week's coordinated currency intervention, with markets watching for any renewed signs of official action should volatility return.
Economic Calendar
- U.S. Initial Jobless Claims
- U.S. Nonfarm Productivity
- Mexico Policy Rate Decision
Key Market Moves Today
- S&P 500 Futures: +0.15% (7,761.0)
- U.S. 10-Year Treasury Yield: -0.40 bps (4.61%)
- Brent Crude: -0.26% ($79.24)
- Bitcoin: -0.45% ($64,497)
- Spot Gold: +0.45% ($4,257)
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