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FINWIRES

German Shares Jump; Siemens Rises on Mermec Asset Acquisition

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German equities rose on Thursday, as investor attention remained focused on the ongoing two-day summit between US President Donald Trump and Chinese President Xi Jinping.

Amid a quiet day for local economic news, the blue-chip DAX index ended the trading day 1.32% in the green.

Trump and Xi are expected to discuss trade, technology, Iran, and Taiwan, with investors monitoring potential deals on tariffs and artificial intelligence. Semiconductor stocks rallied globally after Reuters reported, citing sources familiar with the matter, that the US cleared Nvidia (NVD.F) to sell its H200 AI chips to 10 Chinese tech companies, including Alibaba, ByteDance, and JD.com.

Against this backdrop, German semiconductor manufacturer Infineon Technologies (IFX.F) became the blue-chip index's best performer, climbing 5.76%, while Nvidia's Frankfurt-listed shares gained 4.43%.

In other corporate updates, Siemens' (SIE.F) mobility division agreed to buy several core units of Italian railway signaling systems company Mermec Group to bolster its international rail technology portfolio. The acquisition specifically involves Mermec's businesses in Italian wayside signaling, electrification, telecommunication, diagnostics, analytics, and worldwide data infrastructure. The German technology conglomerate gained 2.59% at close.

Meanwhile, RBC Capital Markets said Allianz (ALV.F) continues to deliver at a "high level" after the German insurer and asset manager reported that its first-quarter operating profit climbed 6.6% to a record level of 4.52 billion euros and affirmed it remains on track to hit its full-year 2026 operating profit target of 17.4 billion euros, plus or minus 1 billion euros. The stock climbed 2.15%.

"Allianz's scale and diversification again paid dividends in Q1, with [property and casualty and asset management] in particular well positioned in the current macro environment. Modestly higher inflation expectations seem a net positive for the company. We are now towards the upper-end of FY26 operating profit guidance, with low double-digit implied upside to our unchanged [target price of 400 euros], a premium multiple to composite peers," the research firm wrote, with a sector perform rating.

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US Equity Indexes Mixed as Communication Services, Tech Help Outweigh Impact of Hot Producer Prices

US equity indexes closed mixed on Wednesday, as communication services and technology led sectors amid the fastest annual pace of growth in producer prices in four years, signaling the strength of the so-called AI trade.The Dow Jones Industrial Average fell 0.1% to 49,693.20. The Nasdaq jumped 1.2% to 26,402.34, and the S&P 500 climbed 0.6% to 7,444.25.In a broadly positive tape, communication services, technology, and consumer discretionary were among the top gainers. Utilities, financials, real estate, and industrials declined.Of the top 10 companies with a market capitalization of more than $200 billion, implying a significant sway over indexes, seven were from technology and communication services, according to data compiled by Finviz. Nasdaq's leaders included Marvell Technology (MRVL), Arm (ARM), and Micron Technology (MU). In the S&P 500, ON Semiconductor (ON) and Hewlett-Packard Enterprise (HPE) were among the biggest outperformers. Nvidia (NVDA) and Cisco (CSCO) were in the top five gainers on the Dow.In economic news, the Producer Price Index soared 1.4% month-over-month in April from a 0.7% gain in March, according to the Bureau of Labor Statistics. The print beat the 0.5% increase expected in a Bloomberg-compiled survey. After excluding food and energy prices, core PPI surged 1.0% from 0.2%, above the 0.3% advance anticipated.Year-over-year, PPI soared 6.0% in April while core PPI catapulted 5.2%, both above their respective March rates and the strongest readings since December 2022.A hotter-than-expected PPI, coupled with Tuesday's larger-than-expected rise in the consumer price index, underscores not only the price impact already realized but the "additional inflationary pressures still coming down the pipeline," according to a Stifel note.With energy cost passthrough likely to keep year-over-year core personal consumption expenditures, or PCE, inflation closer to 3% than 2% all year, Goldman Sachs said in a note that lower monthly inflation prints after the oil shock fades and further labor market softening will likely be needed for Fed rate cuts this year."We now expect it to take a bit longer to meet that bar," the investment bank said while pushing back the final two rate cuts in its forecast to December 2026 and March 2027.US Treasury yields were mostly down, with the 10-year steady to slightly lower at 4.47%.The two-year slipped 1.5 basis points to 3.98%.Meanwhile, in its closely watched Oil Market Report, the International Energy Agency said the loss of Persian Gulf supply is depleting global inventories at a record pace. Inventories fell by 129 million barrels per day in March and by 117 million bpd in April, though rising output from producers outside of the Gulf is helping to ease the supply shock."With Hormuz tanker traffic still restricted, cumulative supply losses from Gulf producers already exceed 1 billion barrels with more than 14 mb/d of oil now shut in, an unprecedented supply shock," the agency said.Nevertheless, West Texas Intermediate crude oil futures fell 0.9% to $101.29, and Brent crude futures declined 1.8% to $105.81.In precious metals, gold futures rose 0.3% to $4,696.2, and silver futures jumped 3.1% to $88.27.

Dow JonesNasdaq CompositeS&P 500$ARM$CSCO$HPE$MRVL$MU$NVDA$ON
Asia Markets

US Equity Indexes Mixed Amid Hot Producer Prices, Tech Gains

US equity indexes traded mixed after midday Wednesday as a hot producer price inflation print failed to restrain technology bulls.The Dow Jones Industrial Average fell 0.2% to 49,596.1, while the Nasdaq jumped 1.2% to 26,409.3 and the S&P 500 climbed 0.6% to 7,445.5. Utilities, financials, and real estate led the decliners. Communication services, consumer discretionary, and technology were among the top gainers.Of the top 10 companies with a market capitalization of more than $200 billion, implying a significant sway over indexes, seven were from technology and communication services. In the S&P 500, ON Semiconductor (ON) was among the top outperformers. Nasdaq's leader was Marvell Technology (MRVL), and Nvidia (NVDA) was the second-biggest gainer on the Dow.Nvidia Chief Executive Jensen Huang joined President Trump on his visit to Beijing, a last-minute addition that has raised expectations of progress in stalled talks over H200 AI chip sales to China, Reuters reported Wednesday.Cantor Fitzgerald adjusted its price target for ON Semiconductor to $100 from $95 while maintaining its neutral rating.In economic news, the US Producer Price Index jumped 1.4% in April from a 0.7% gain in March, according to the Bureau of Labor Statistics, beating the 0.5% increase expected in a survey compiled by Bloomberg. After excluding food and energy prices, core PPI surged 1.0% from 0.2%, above the 0.3% advance anticipated.Year-over-year, PPI soared 6.0% in April while core PPI catapulted 5.2%, both above their respective March rates and the strongest readings since December 2022.A hotter-than-expected PPI, coupled with Tuesday's larger-than-expected rise in the consumer price index, underscores not only the price impact already realized, but the additional inflationary pressures still coming down the pipeline, according to a Stifel note."As the administration continues to work for a resolution to the conflict, even with a nearer-term reopening of the Strait of Hormuz or a restoration of global oil supply and flows, given the lag time between oil and gas prices, the brunt of the price pressure may still be felt in the coming months," Lindsey Piegza, Stifel's chief economist, said in the note.Meanwhile, in its closely watched Oil Market Report, the International Energy Agency said the loss of Persian Gulf supply is depleting global inventories at a record pace. Inventories fell by 129 million barrels per day in March and by 117 million bpd in April, though rising output from producers outside of the Gulf is helping to ease the supply shock."With Hormuz tanker traffic still restricted, cumulative supply losses from Gulf producers already exceed 1 billion barrels with more than 14 mb/d of oil now shut in, an unprecedented supply shock," the agency said.West Texas Intermediate crude oil futures slipped 0.3% to $101.90, and Brent crude futures declined 1.5% to $106.19.US Treasury yields were mixed, with the 10-year up one basis point to 4.48%. The two-year rate was steady at 3.99%.In precious metals, gold futures rose 0.5% to $4,711.1, and silver futures jumped 5% to $89.84.

Dow JonesNasdaq CompositeS&P 500$MRVL$NVDA$ON
Asia Markets

Exchange-Traded Funds, US Equities Mixed After Midday

Broad Market IndicatorsBroad-market exchange-traded fund IWM edged lower and IVV rose. Actively traded Invesco QQQ Trust (QQQ) added 0.9%.US equity indexes traded mixed in midday trading on Wednesday amid a hot producer price inflation print.EnergyIShares US Energy ETF (IYE) and the State Street Energy Select Sector SPDR (XLE) each lost about 0.5%.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) rose 0.9%; iShares US Technology ETF (IYW) gained 1.4%, and iShares Expanded Tech Sector ETF (IGM) was up 0.9%.The State Street SPDR S&P Semiconductor (XSD) climbed 3.3%, and iShares Semiconductor (SOXX) was up 2.4%.FinancialThe State Street Financial Select Sector SPDR (XLF) fell 1.1%. Direxion Daily Financial Bull 3X Shares (FAS) declined 3%, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), advanced 3.1%.CommoditiesCrude oil fell 0.5%, and the United States Oil Fund (USO) lost 1.1%. Natural gas rose 0.3%, and the United States Natural Gas Fund (UNG) added 1%.Gold on Comex was up 0.5% and the State Street SPDR Gold Shares (GLD) slipped 0.3%. Silver climbed 5%, and iShares Silver Trust (SLV) added 2.6%.ConsumerThe State Street Consumer Staples Select Sector SPDR (XLP) dipped 0.2%. The Vanguard Consumer Staples ETF (VDC) shed 0.2%, and iShares Dow Jones US Consumer Goods (IYK) fell 0.2%.The State Street Consumer Discretionary Select Sector SPDR (XLY) gained 0.6%. VanEck Retail ETF (RTH) fell 0.1%, and the State Street SPDR S&P Retail (XRT) was down 1.4%.HealthcareThe State Street Health Care Select Sector SPDR (XLV) added 0.3%, iShares US Healthcare (IYH) rose 0.2%, and Vanguard Health Care ETF (VHT) gained 0.3%. IShares Biotechnology ETF (IBB) was down 0.3%.IndustrialThe State Street Industrial Select Sector SPDR (XLI) fell 0.4%. Vanguard Industrials Index Fund (VIS) and iShares US Industrials (IYJ) were also lower.CryptocurrencyIn midday activity, bitcoin (BTC-USD) dropped 1.9%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) shed 2.2%, ProShares Ether ETF (EETH) was down 1.6%, and ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) was 1.5% lower.

Dow Jones^EEM^EXI^FAS^FAZ^GLD^IBB^IGM^IGV^IPK^IVV^IWMNasdaq Composite^IYE^IYH^IYJ^IYK^IYW^PMR^QQQ^RTH^SOXXS&P 500^SPY^UNG^USO^VDC^VHT^VIS^XLE^XLF^XLI^XLK^XLP^XLV^XRT^XSD$BETH$BITO$EETH