Equites and Futures Rebound as Chip-makers Shine – Europe Market Wrap

Thursday saw gains in US futures and stocks as traders shifted their focus to business news following their acceptance that rate cuts might not occur until after the first quarter.

The STOXX Europe 600 index crept higher after falling over 2% in the first three days of the week. China’s benchmark CSI 300 Index jumped 1.4% as a spike in ETF trading suggested state funds were involved. Futures on the Nasdaq 100 and S&P 500 increased 0.8% and 0.4%, respectively.

Chipmakers rallied in US premarket trade after Nvidia and Apple’s primary supplier, Taiwan Semiconductor Manufacturing, indicated it anticipates a return to good growth this quarter. Nvidia rose 1.6%, while Microchip increased more than 2%, and AMD and Applied Materials added more than 2% each. Apple gained 1.7% and Nvidia gained 1.6%.

IEA Monthly Report: IEA raises 2024 global oil demand growth forecast by 180k BPD to 1.24 mln BPD citing improved GDP outlook and Q4 2023 price drop.

ECB Account: Market repricing could derail disinflation process. The fall in inflation was encouraging.

Signs that European policymakers are convergent on a June rate cut helped soothe markets, as did hints that Chinese state funds are coming to the rescue of shares battered by a slowing economy.