Market News & Analysis

Equity Brief: U.S. chipmakers boast sentiment in Asian stocks

Stock market snapshot as of [25/07/2019 0527 GMT]


  • Ahead of the European opening session, most Asian stock markets are showing positive performances triggered by the stellar gains seen in key U.S. semiconductors stocks that have helped to lead the S&P 500 and Nasdaq 100 to another record fresh all-time highs.
  • The key catalyst came from Texas Instruments, a major U.S. chipmaker that soared by 7.4% on better than expected earnings results that offset the headwinds from U.S./China trade tensions and fallout from China’s Huawei Technologies where it has contributed to 3% to 4% of Texas Instruments’ global revenue.
  • The Australia’s ASX 200 is now just 0.5% away from its all-time high level of 6851 printed in Oct 2007 on the backdrop of an easing liquidity condition. RBA governor Lowe has commented in a public speech today that low interest rates are here to stay and can go lower if economic activities fail to take off.
  • The underperformer as at today’s Asian mid-session is Korea’s Kospi 200; almost unchanged due to rising regional geopolitical risk where North Korea has launched two projectiles from the eastern part of the Korean Peninsula.  
  • After the S&P 500 closed at a new record all-time high of 3019, the S&P E-min futures has remained firm in today’s Asian session as it has inched higher by 0.22% to print a current intraday high of 3024.
  • European stock indices CFD futures are recording modest gains at this juncture where the FTSE 100 is up by 0.30% after its underperformance seen in yesterday, 24 Jul where it declined by -0.73% due to Brexit uncertainties. The German DAX CFD futures has rallied by 0.54% after a bullish break and a daily close above the 12500 key medium-term resistance.
Up Next
  • ECB monetary policy decision at 1145 GMT follow by its press conference at 1230 GMT. The consensus is set for no interest rate cut on its key deposit rate now at -0.4%. A dovish statement from ECB out-going governor Draghi can firm up the forward guidance for a cut in the Sep meeting follow by a restart of the QE programme that may see European stocks extending their gains.
  • U.S. bellwether tech and FAANG stock, Amazon will report its Q2 earnings after the close of U.S. session today. Consensus for its EPS is set at $5.29 where a beat is likely to see a retest on its current all-time high of 2050.50 printed on 04 Sep 2018; it closed at 2000.81 yesterday, 24 Jul. Further gains in Amazon can drive up the S&P 500 and Nasdaq 100 where it has a significant market capitalised weightage in these indices (3rd largest in the S&P 500 & the 2nd largest in the Nasdaq 100).

Macroeconomic Calendar


*Data from Refinitiv. Index names may not reflect tradable instruments and not all markets are available in all regions.





Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.