Taiwan Semiconductor Manufacturing Co (TSMC) , the world’s largest contract chipmaker, reported a 54% jump in quarterly profit , surpassing forecasts, thanks to soaring demand for AI-related chips . This robust performance underscores TSMC’s dominance in producing advanced chips for AI applications, with key customers like Apple and Nvidia . TSMC's net profit for 3Q2024 reached T$325.3 billion (US$10.11 billion) , exceeding the T$300.2 billion forecasted by analysts. The company's revenue rose 36% year-on-year to US$23.5 billion , driven by strong demand for smartphone and AI chips utilizing its cutting-edge 3nm and 5nm technologies . The AI boom has been a major growth driver, with AI processors expected to account for a mid-teens percentage of TSMC's overall revenue for 2024. TSMC's capital spending for the current quarter is set to more than double to US$11.5 billion , and it expects capital expenditure to increase further in 2025 as demand remains robust. Chai
European stocks made modest gains on Thursday, while the euro remained pinned near an 11-week low, as investors anticipated a likely rate cut from the European Central Bank (ECB). Meanwhile, the US dollar strengthened, buoyed by expectations surrounding Donald Trump’s trade policies ahead of the 2024 US election.
The ECB is widely expected to make its first back-to-back rate cut in 13 years. With markets also pricing in another cut in December, attention will be on ECB President Christine Lagarde's guidance during the press conference, despite analysts noting that her remarks often don’t provide clear indications.
The recent dip in the euro, which was down 0.1% at US$1.0851, stems from weak purchasing manager index (PMI) data in September that fueled expectations for a rate cut. Germany’s 10-year Bund yield rose slightly to 2.21%, following a two-week low the day prior.
Jordan Rochester, head of fixed income and currency strategy at Mizuho EMEA, noted that the euro could further weaken to US$1.08 as hedges around Trump’s election campaign gain momentum. Trump's tariff, tax, and immigration policies are seen as potentially inflationary, making the dollar more attractive.
In equity markets, Europe’s Stoxx 600 rose 0.3%, bolstered by strong earnings reports that offset earlier concerns over disappointing results from ASML and LVMH. Positive earnings from TSMC, which exceeded expectations, helped the Nasdaq futures climb 0.6%, while S&P 500 futures gained 0.3%.
In Asia, China’s real estate stocks fell 7%, reversing gains made earlier in the week, as a housing policy briefing failed to excite investors, despite promises from China’s housing minister to improve builders’ access to funding. Investors remain cautious, awaiting more significant government spending to revive the sector.
Meanwhile, Brent crude futures steadied at US$74.48 per barrel, and gold traded at US$2,680 an ounce.
Comments
Post a Comment