Equities: Chip-led selloff under stagflation pressure – Deutsche Bank

Global equities faced another challenging session as rising yields and higher oil prices intensified a stagflationary environment, according to Deutsche Bank strategists. US indices, driven by chip stocks and the NASDAQ, continued to decline, while the STOXX Europe 600 experienced its fifth consecutive decline. Asian markets followed suit, with semiconductor-heavy benchmarks witnessing sharp losses.

Futures indicated further weakness in US and European stocks. The stagflationary backdrop led to fresh declines on both sides of the Atlantic, with the S&P 500 (-0.69%) falling for a third straight session, and the NASDAQ (-1.33%) underperforming. The Mag-7 (-0.88%) was led down by Meta (-4.42%), while the equal-weighted S&P 500 (-0.45%) also suffered.

In Europe, the STOXX 600 (-0.69%) posted its fifth consecutive decline for the first time since 2026, alongside losses for the DAX (-0.80%) and the CAC 40 (-0.82%). Asian markets saw similar trends, with the KOSPI (-5.44%) leading the decline, followed by the Nikkei (-2.85%), the CSI 300 (-2.41%), and the Shanghai Comp (-1.96%).

The Hang Seng (+0.24%) was the only notable exception, experiencing a modest gain. Equity futures suggested further declines in the US and Europe. The British Pound (GBP) remained relatively stable as UK inflation data failed to boost its value. EUR/USD strengthened toward 1.1600, while gold dipped near $4,450 before the European session.

Despite strong support, Shiba Inu (SHIB) showed improving sentiment as social dominance increased and bullish traders boosted their long positions, suggesting a potential recovery if it sustains above the critical $0.0000043 level.