Equities: Risk sentiment holds despite oil and rates – Deutsche Bank

Deutsche Bank strategists report that US equities saw modest losses as Oil extended gains, with the S&P 500 easing slightly from record highs and chipmakers leading declines. Energy and health care outperformed. In Europe, the STOXX 600, DAX and CAC 40 hit new records, while the FTSE 100 slipped, and early-August risk sentiment remains unusually resilient.

Stocks resilient versus usual August pattern

"With the move higher in oil extending as the session went on, risk assets struggled to get traction, with the S&P 500 (-0.06%) seeing a marginal pull back from Friday’s all-time high."

"The NASDAQ (-0.32%) and Russell 2000 (-0.56%) also lost ground, though energy (+4.63%) and health care (+1.68%) sectors helped limit the S&P 500’s decline. Leading yesterday’s losses were chipmakers, with the Phily semi index dropping -2.94% after its +9.25% rebound last week."

"In AI news, Intel (-4.06%) is planning a $15bn offering of new stock, which would be the chipmaker’s first share sale since 1971. And then shortly after the US close we heard Nvidia (-2.86% yesterday) announce that it is teaming up with several investment firms to mobilize $500bn “to create dedicated pools of capital at significant scale at attractive rates for Nvidia customers”. After the softer US close S&P 500 (+0.14%) and NASDAQ 100 (+0.37%) futures are edging higher though."

"In Europe, it was a marginally more positive story, with the STOXX 600 (+0.03%) inching up to a new record, having now posted 6 consecutive gains for the first time since May. That included a new record for the DAX (+0.02%) and the CAC 40 (+0.13%), but the FTSE 100 (-0.35%) slipped back."

"In Asia the KOSPI is up +1.46%, but with mainland China broadly flat and the Hang Seng declining -0.60%. Japanese markets are closed today for a public holiday."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)