Chip stocks surged for a second day on optimism about artificial intelligence. Marvell Technology finished up more than 30 per cent after it forecast its annual artificial intelligence (AI) revenue would double.
Shares of the world’s most valuable chipmaker, Nvidia, added 2.54 per cent after vaulting to a record high on Thursday following a bumper forecast.
The pan-European STOXX 600 index closed 1.2 per cent higher, bouncing back from Thursday’s eight-week low. Swedish gaming company Embracer jumped 13.1 per cent to top the index, and Faurecia added 7.5 per cent after Jefferies upgraded the French car parts maker to “buy”.
Italy hopes to close 2023 with economic growth of between 1.2 per cent and 1.4 per cent, higher than the official target set at 1 per cent in April, Economy Minister Giancarlo Giorgetti said.
The yield on two-year Treasury notes, which rises with traders’ expectations of higher federal fund rates, rose to 4.5598 per cent from 4.51 per cent previously.
CHINA RECOVERY QUESTIONED
In Asia, Japan’s Nikkei rose 0.4 per cent with revenue and production upgrades for Nvidia boosting Japanese firms with exposure.
The cost of insuring exposure to US government debt dropped on Friday.
China’s yuan slid along with Chinese stocks as the shine comes off expectations of a booming post-pandemic recovery, sending steel prices in the country to a three-year low.
“The US debt issues are not the only ‘ceiling’ that we are dealing with, as a slowdown in Chinese economic data suggests that a ceiling for growth may be forming as well,” said RBC technical strategist George Davis.
Brent crude settled 69 cents, or 0.9 per cent, higher at US$76.95 a barrel and US crude closed up 84 cents, or 1.2 per cent, to US$72.67 as traders juggled conflicting messages on supply from key producers ahead of the next OPEC+ policy meeting.
Spot gold prices rose 0.33 per cent to US$1,946.69 an ounce, and gold futures edged up 0.03 per cent to settle at US$1,944.30.