Equities: Global tech rally extends with AI enthusiasm – Deutsche Bank

Deutsche Bank strategists highlight that US equities advanced on strong data and a buoyant tech mood, with the Nasdaq and Mag-7 moving higher alongside a sharp rise in the Philly semiconductor index. European equities also gained, though the FTSE 100 lagged on HSBC earnings. Asian markets followed Wall Street’s lead, with South Korea’s KOSPI and Japan’s Nikkei outperforming on AI and chip-related optimism.

Tech-led gains drive global equity strength

"The strong data yesterday also added to the resilience of US equities, which were already advancing amidst a continuing buoyant tech mood. Indeed, the Philly semiconductor index (+3.60%) posted a big gain, while the Nasdaq (+1.18%) and the Mag-7 (+0.94%) also marched higher. Notable tech moves came from CoreWeave (+7.94%), Nvidia (+0.90%), and Broadcom (+4.00%). "

"European equities also continued this week’s advance, with the Stoxx 600 (+0.47%), DAX (+0.71%), and CAC 40 (+0.51%) all gaining. Only the FTSE 100 (-0.75%) underperformed, dragged by a fall in HSBC (-5.42%) after its Q3 earnings fell short of estimates. The true test of the tech-rally will be today, with Alphabet and Microsoft amongst those reporting their earnings."

"Asian equity markets are trading broadly higher this morning, building on Wall Street’s overnight gains amid renewed enthusiasm around AI-related stocks. Across the region, South Korea’s KOSPI (+6.80%) is surging after chipmaker SK Hynix (+9.84%) reported blockbuster third-quarter results, with net profit tripling from a year earlier."

"This has helped push US Nasdaq futures +0.35% higher. Japan’s Nikkei (+1.11%) is also extending its recent rally, while gains elsewhere are more modest, with the Hang Seng (+0.36%), CSI 300 (+0.76%), and Shanghai Composite (+0.81%) all in positive territory. The S&P/ASX 200 (-0.03%) is lagging regional peers, as stronger-than-expected inflation data reinforced expectations of another RBA rate hike next week."

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