TSMC Encourages Relief Rally, Setting Up Stocks for Gains – Europe Market Wrap

Chip stocks rebounded, calming market worries, as data from TSMC boosted gains across major stock indexes.

Contracts on the tech-heavy Nasdaq 100 rose 0.7% on Thursday, spurred by an increase in chip companies after TSMC reported better-than-expected quarterly earnings growth of 54%. That helped to mitigate the impact of ASML Holding’s lower 2025 estimate, which halted a surge that had sent US-traded shares to a three-month high. The Stoxx 600 index rose 0.5%.

Treasury 10-year rates rose two basis points to 4.04%, while the Dollar index remained largely unchanged.

The ECB’s policy decision is due tomorrow, and it is expected to lower its base rate by another quarter point to 3.25%.

Gold rose to a new high ahead of US retail sales and unemployment numbers, as the increasingly tight presidential campaign fuels demand for haven assets. Oil prices stabilised following four days of losses, as traders assessed possible concerns to Middle Eastern production.

Iron ore fell to a three-week low following China’s latest steps to shore up the housing market, raising doubts that they will be sufficient to increase construction activity and steel demand.