Equities: Global risk rally extends on softer inflation – Deutsche Bank
Deutsche Bank strategists highlight a broad-based rally in global equities as lower Oil prices, easing inflation expectations and resilient US data support risk appetite. The S&P 500 and major European indices hit or approached record highs, while Asian benchmarks also advanced.
Deutsche Bank analysts report a sustained global equities rally driven by softer inflation expectations, lower oil prices, and confident US economic data. Major US indices such as the S&P 500 and the Nasdaq have both reached record highs, while European markets have also seen record-breaking performances. Asia's equity markets are also showing strong gains with the KOSPI and Nikkei leading the charge.
Australian household spending figures add to the optimism, with the S&P/ASX 200 poised to surpass its previous all-time high. The tech sector, particularly the semiconductor industry, has been a standout performer, with the Nasdaq climbing 2.59% and the Philadelphia Semiconductor Index surging 6.55%. Despite AMD's slightly better-than-expected Q3 revenue guidance, the NASDAQ shows some underperformance compared to the S&P 500.
Overall, the equity market sentiment remains upbeat, buoyed by the potential for a US-Iran deal and the prospect of lower oil prices and easing inflation.
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