Equities: Stabilise with lower yields – Deutsche Bank

Deutsche Bank's Jim Reid notes that US equities stabilised after three consecutive declines, with the S&P 500 gaining 0.46% as strength in the Magnificent Seven, particularly Nvidia and Meta, supported the market. European equities remained softer, while Asian stocks and US and European futures pointed to a more positive tone.

US stocks bounce as mega-cap tech leads gains

"With that in mind, US equities finally stabilised yesterday, with the S&P 500 (+0.46%) recovering after 3 consecutive declines. That was lifted by a decent rally for the Mag 7 (+0.76%) which in turn were lifted by Nvidia (+3.21%) and Meta (+2.47%)."

"But it was a different story in Europe, where the STOXX 600 (-0.24%) hit a five-week low, alongside declines for the DAX (-0.50%), the CAC 40 (-0.26%) and the FTSE 100 (-0.30%)."

"In Asia, sentiment is more positive with the KOSPI (+1.52%) leading gains, with technology names benefiting from the positive read-through from Broadcom’s aggressive outlook for chip sales overnight."

"This offset a slightly tepid current quarter for the US chipmaker. Meanwhile, the Nikkei (+0.34%), CSI 300 (+0.48%), Shanghai Composite (+0.42%), and S&P/ASX 200 (+0.43%) are all edging higher."

"US and European futures are all up less than a tenth of a percent."