As of 12:00 Germany time (CEST, UTC+2)
TL;DR: Technology shares recovered on Thursday as investors responded to strong demand for SK Hynix's U.S. listing and reports that China may allow limited access to Nvidia's H200 chips. European equities rose and Japan broke a three-day losing streak, while oil eased from Wednesday's spike. The rebound was constructive, although the U.S.-Iran conflict, reduced Hormuz traffic and tighter rate expectations continued to limit the wider relief.
In Asian Equity Markets trading was volatile as renewed interest in semiconductor shares competed with the latest escalation in the Gulf. Japan's Nikkei gained around 1.8 percent and ended a three-session decline. South Korea initially rallied strongly before giving back the advance as energy-import concerns and recent market volatility weighed on sentiment. Demand for SK Hynix's planned U.S. listing was reportedly more than seven times the available shares, giving investors another indication that appetite for AI memory exposure remains strong.
In European Equity Markets stocks rose for the first time this week as technology and basic-resource shares led the recovery. The pan-European STOXX 600 gained around 0.8 percent, while the technology sector advanced roughly 2.7 percent. Siltronic, Soitec and ASML moved sharply higher after reports that China could grant selected domestic AI companies access to Nvidia's H200 chips. Healthcare lagged after AstraZeneca reported a late-stage trial setback, showing that the stronger market tone remained selective rather than indiscriminate.
In U.S. Equity Markets futures were broadly steady as investors balanced improving semiconductor sentiment against renewed U.S.-Iran hostilities. Micron remained in focus after outlining plans to invest more than $250 billion in the United States through 2035, while the heavily oversubscribed SK Hynix offering reinforced expectations for continued AI infrastructure spending. Weekly jobless claims and comments from Federal Reserve officials were due later in the session, leaving the market sensitive to any evidence that inflation risk is beginning to affect hiring or policy expectations.
In Commodities Markets oil gave back part of Wednesday's sharp increase as traders judged that the latest exchange of attacks may still leave room for diplomacy. Brent fell roughly 2 percent toward $77 per barrel, while WTI traded near the low-$70s. The decline helped risk appetite, but shipping conditions remain fragile. Persian Gulf oil flows had recovered above 80 percent of pre-war levels before the latest tanker attacks pushed activity back toward the low-70s percentage range.
In Currency Markets major exchange rates were relatively stable despite the renewed fighting. The dollar remained supported by defensive demand and expectations for further Federal Reserve tightening, while the yen traded near 162.5 per dollar. That leaves the Japanese currency close to its weakest level in roughly four decades and keeps direct intervention firmly on the table. Higher oil is particularly uncomfortable for Japan because it raises import costs while wide rate differentials continue to favour the dollar.
In Bond Markets yields remained elevated as investors absorbed the inflation message from the Fed minutes and the latest rise in energy prices. The U.S. 10-year Treasury yield traded near 4.55 percent after reaching a seven-week high, while Japan's 10-year government-bond yield climbed to a 30-year high near 2.89 percent. Fed funds futures priced around 38 basis points of tightening by year-end, reversing much of the easing in expectations that followed the softer June payroll report.
The Cross-Asset Read
Thursday's rebound showed that investors still have a strong appetite for the AI investment cycle.
The SK Hynix offering, Micron's U.S. investment plans and the possibility of additional Nvidia sales into China gave chip shares a credible reason to recover. Europe also benefited from lower oil, which took some pressure off the inflation and margin outlook after Wednesday's escalation.
The bond market remained less comfortable. Treasury yields are close to recent highs, Japanese yields have reached levels last seen three decades ago and the Fed minutes showed more concern about inflation than investors had hoped. Oil has eased, but Hormuz traffic is still running well below normal and another attack could reverse the move quickly.
Brent staying below $80 and the U.S. 10-year yield holding below 4.60 percent would leave room for the chip recovery to continue. Sustained moves above both levels would make it much harder for strong AI demand to carry the wider market.
For now, technology has found buyers. The macro backdrop is still asking a higher price for that exposure.
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