Nasdaq Set for Gains as TSMC Spurs Relief Rally: Markets Wrap

(Bloomberg) — A recovery in chip stocks soothed market nerves as results from Taiwan Semiconductor Manufacturing Co. spurred gains across major stock gauges.

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Contracts on the tech-heavy Nasdaq 100 contracts climbed 0.7%, led by an advance in chip stocks after TSMC posted a better-than-projected 54% rise in quarterly earnings. That helped offset disappointment following results from ASML in the previous session. The Stoxx 600 index gained 0.5%.

“TSMC earnings were clearly a positive and that has allayed some of the worries around the chip sector after that dismal report from ASML,” said Michael Brown, strategist at Pepperstone Group Ltd. “The outlook for risk remains very positive particularly as central banks across both developed markets continue to remove policy restriction at a pretty rapid pace.”

The European Central Bank’s policy decision is due later, where it’s expected to cut its benchmark rate by another quarter-point to 3.25%.

Treasury 10-year yields climbed two basis points to 4.03%, while the Bloomberg dollar index was little changed.

Gold climbed to a record ahead of US data prints due later Thursday and as the increasingly tight presidential race drives demand for haven assets. Oil steadied, after four days of declines, as traders weighed potential risks to production in the Middle East, and as China’s latest economic briefing failed to spur expectations of increased demand.

Iron ore tumbled to a three-week low following China’s latest moves to shore up the property market, underscoring skepticism they will be enough to boost construction activity and steel demand.

Key events this week:

ECB rate decision, Thursday
US retail sales, jobless claims, industrial production, Thursday
Fed’s Austan Goolsbee speaks, Thursday
China GDP, Friday
US housing starts, Friday
Fed’s Christopher Waller, Neel Kashkari speak, Friday

Some of the main moves in markets:

Stocks

S&P 500 futures rose 0.3% as of 4:57 a.m. New York time
Nasdaq 100 futures rose 0.7%
Futures on the Dow Jones Industrial Average were little changed
The Stoxx Europe 600 rose 0.5%
The MSCI World Index was little changed

Currencies

The Bloomberg Dollar Spot Index was little changed
The euro fell 0.1% to $1.0851
The British pound fell 0.1% to $1.2976
The Japanese yen fell 0.1% to 149.85 per dollar

Cryptocurrencies

Bitcoin fell 0.3% to $67,416.13
Ether rose 0.2% to $2,623.32

Bonds

The yield on 10-year Treasuries advanced two basis points to 4.04%
Germany’s 10-year yield advanced three basis points to 2.22%
Britain’s 10-year yield advanced two basis points to 4.08%

Commodities

West Texas Intermediate crude rose 0.3% to $70.58 a barrel
Spot gold rose 0.3% to $2,681.19 an ounce

This story was produced with the assistance of Bloomberg Automation.