Chip Manufacturers Make Stock Market Soar
Currently, news from Asia is dominating our stock market landscape. On Monday, it was the massive stimulus for China's economy; today, it is the chip and tech stocks that are pushing the markets up. Today's rally began with the positive earnings figures from Micron Technology Inc. The memory chip manufacturer is benefiting enormously from AI development and has therefore forecasted rising profits for the future. This triggered the avalanche in Asia. The Korean memory chip supplier, SK Hynix Inc., started mass production of chips for the latest AI generation. The stock surged by over 9% at its peak today, pushing the Korean KOSPI up by 53 points or 2.05% until the early morning hours (05:30 CET).
Chinese markets are still celebrating state support and are again recording gains today. The Hang Seng led the way, gaining 307 points or 1.6%. Also riding the technology wave was the Japanese Nikkei 225, which has returned to its usual volatility. The leading index gained 920 points or 2.4%.
In such a positive environment, the DAX could only rise. Germany has little to say regarding chip production, but the positive cues have driven the DAX, and the 19,000-point mark has been surpassed.
DAX Today
The Asian developments are likely to lead to a friendly start for the DAX today. Whether it will stay above the 19,000-point mark is questionable, but the basis for a further firm trend is certainly present, unless today's economic data from the USA dampens the mood. At 14:30 CET, a series of interest-sensitive data will be released (see below). Currently, every percentage point is being scrutinized to predict the Fed's next rate hike in early November. Additionally, starting around 15:20 CET, financial leaders Powell, Lagarde, and Yellen will speak almost simultaneously at various events. Not to be forgotten is the Swiss interest rate decision at 09:30 CET with the subsequent press conference at 10:00 CET.
In summary, it will not be a dull day in the markets. The overall mood remains friendly, and the markets are addicted to new record highs. Therefore, we expect further rising prices. However, we do not want to blindly buy the DAX today. We will wait for a decline well below the 19,000-point mark and then look for a long entry. Today, it is advisable to be very vigilant, as important events are spread throughout the day, which can create volatility at any time.
Economic Data Today (Filtered):
01:50 JPY Minutes of the Monetary Policy Meeting
04:30 AUD RBA Financial Stability Report
08:00 EUR GfK Consumer Climate Germany (Oct)
09:30 CHF SNB Interest Rate Decision (Q3)
09:30 CHF SNB Monetary Policy Assessment
10:00 CHF SNB Press Conference
14:30 USD Continuing Jobless Claims
14:30 USD Durable Goods Orders - Core (MoM) (Aug)
14:30 USD Core PCE Price Index (Q2)
14:30 USD Corporate Profits (Quarter) (Q2)
14:30 USD Durable Goods Orders (MoM) (Aug)
14:30 USD Nondefense Capital Goods Orders (MoM) (Aug)
14:30 USD Gross Domestic Product (GDP) (Quarter) (Q2)
14:30 USD Nondefense Capital Goods Orders Excluding Aircraft (Aug)
14:30 USD Initial Jobless Claims
14:30 USD Real Consumer Spending (Q2)
14:30 CAD Average Weekly Earnings (YoY) (Jul)
14:30 CAD Manufacturing Sales (MoM)
15:20 USD Fed Chair Powell Speaks
15:30 EUR ECB President Lagarde Speaks
17:15 USD Treasury Secretary Yellen Speaks
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