ASML Surge Fuels Tech Rally as Gold Hits Record High

ASML shares jumped after strong third-quarter bookings, driving a tech rally across Asia and boosting the Philadelphia Semiconductor Index (SOX) by 3%. US bank earnings reinforced confidence in the economy, lifting sentiment despite a lack of macro data during the government shutdown. Meanwhile, gold reached new record highs and the dollar slid sharply against the yen and Swiss franc amid renewed US-China trade tensions.

Equities

London’s FTSE 100 fell 0.3% on Wednesday as investors waited for August GDP data and assessed reports that the government is considering tax rises and spending cuts in next month’s budget. The FTSE 250 slipped 0.03%. Chancellor Rachel Reeves confirmed that both spending and taxation were under review ahead of her 26 November fiscal statement, while the IMF urged the Bank of England to remain cautious about cutting rates given that UK inflation is set to stay the highest among G7 economies through 2026.

Burberry gained 3.3% after luxury sector bellwether LVMH reported stronger-than-expected third-quarter sales, sparking a rally across the personal goods sector, which rose 3.6%. PageGroup rose 3.4% after posting third-quarter results that exceeded profit forecasts. In contrast, Entain slipped 2.4% following a slowdown in its gaming revenue growth, while Beazley declined 2.5% as non-life insurers fell 1.7%. Aerospace and defence stocks declined for a fifth straight session, with BAE Systems leading losses on the FTSE 100.

Across the Atlantic, the S&P 500 closed 0.40% higher at 6,671.06 points on Wednesday, lifted by gains in major banks and chipmakers. The Nasdaq rose 0.66% to 22,670.08 points, while the Dow Jones Industrial Average edged 0.04% lower to 46,253.31. Morgan Stanley rallied 4.7% to a record high after reporting quarterly earnings above forecasts, supported by strong dealmaking activity. Bank of America advanced 4.4% after also beating profit expectations. Goldman Sachs and JPMorgan Chase, which reported earlier in the week, highlighted continued momentum in investment banking. The S&P 500 banking index rose 1.2% for its third straight day of gains.

Chipmakers extended their rally, with the Philadelphia Semiconductor Index up 3% after Dutch equipment maker ASML reported stronger third-quarter orders and operating income on booming demand for AI-related products. ASML’s US-listed shares climbed 2.7%. Among other US companies, grain trader Bunge surged nearly 13% despite trimming its 2025 earnings outlook following its merger with Viterra. Abbott Laboratories dropped 2.4% after posting weaker-than-expected revenue, while insurer Progressive Corp fell 5.8% after its quarterly results disappointed investors.

Forex & Commodities

The US dollar weakened on Wednesday against major currencies as renewed trade tensions between Washington and Beijing unsettled markets. The dollar fell to ¥151.24 and 0.7970 francs while the euro strengthened to $1.1646, supported by the French government’s proposal to suspend key pension reforms. The pound edged higher against the dollar in late trading, helped by expectations for steady UK growth data due later today. Traders also focused on Federal Reserve Chair Jerome Powell’s comments that left the door open to interest rate cuts, even as a government shutdown limits the release of official economic data. The Fed’s Beige Book indicated that employment and overall activity remained broadly stable but noted signs of weakening consumer demand.

Gold extended its record-setting rally, breaching $4,200 per ounce on Wednesday for the first time and trading at $4,195 in late New York hours as investors sought safety amid rate-cut expectations and trade uncertainty. Silver also rose sharply, reaching $52.64, while platinum advanced to $1,647 and palladium eased slightly to $1,523.

Oil prices climbed around 1% early on Thursday, with Brent crude at $62.45 and West Texas Intermediate at $58.84, after US President Donald Trump said India would stop importing Russian oil. The move came alongside new UK sanctions on Russian energy firms Rosneft and Lukoil and US pressure on Japan to curb Russian energy purchases. Later today, traders will watch for the US Energy Information Administration’s inventory report following mixed data from the American Petroleum Institute showing a sharp rise in crude and gasoline stockpiles last week.