Mixed sentiment prevailed on Western European exchanges. The biggest loser of Thursday’s session was the Paris CAC40, which, after a weak opening, continued to decline, falling 0.79%. Supply dominated in Switzerland: after a weak morning, the SMI closed lower by 0.56%.
Risk was shed in both London and Milan: the FTSE100 and FTSE MiB indices fell 0.18% and 0.15% respectively. The homegrown DAX (+0.29%) proved to be the winner, finishing trading above the line.
GPW: Allegro (+2.01%), Modivo (+3.88%), Dino (+2.11%)
The Warsaw market, after a poor opening, regained strength, which translated into a strengthening of domestic aggregates, even amid continued dollar appreciation.
Warsaw blue chips strengthened markedly, represented by the WIG20 (+0.68%).
The most active were Allegro (+2.01%), supported by a string of positive recommendations, while among the largest firms Modivo (+3.88%), Dino (+2.11%) and Żabka (+1.65%) also performed well.
The broad market index WIG, after a bullish session, gained an additional 0.76%. The second and third lines of companies showed visible strength: the mWIG40 and sWIG80 indices gained 1.02% and 0.74% respectively.
U.S. Equity Market
Benchmark 10‑year Treasury yields fell 3 basis points to 5.27. While we see the possibility of further yield declines, this move appears limited.
New York proved to be the site of the most important events yesterday. The main observation was the rotation from semiconductor firms toward the biggest Big Techs: with a strong discount to the SOX index, which fell over 6%. The Dow Jones Industrial Average gained 0.17%, the S&P 500 rose symbolically by 0.22%, while the Nasdaq 100, weighed down by weak semiconductors, fell 1.54%.
The main theme of the session was Bloomberg reports on Meta Platforms’ (+8.81%) plans to launch its own cloud business. This information triggered a strong discount to neoclouds, reminding investors that compute demand is not infinite. The assumption of a lasting shortage of compute power is one of the foundations of the business model and valuations of companies such as CoreWeave (-13.92%) or Nebius (-17.01%).
Declines in Asia: Samsung (-7.79%), SK Hynix (-10.43%)
The company’s announcement, which itself spent hundreds of billions of dollars in CAPEX to develop its own AI infrastructure, naturally raises the question of whether neoclouds are a lasting layer of the AI ecosystem or primarily beneficiaries of a transitional compute shortage. Morning views of Asian markets present a mixed picture.
Notably, the KOSPI (-5.71%) is clearly over‑discounted due to semiconductor sector declines: Samsung (-7.79%), SK Hynix (-10.43%). Pessimism also manifested in the Land of the Rising Sun, where after an initial supply wave the key aggregate, Nikkei225, has already lost 1.67%.
Decision‑making is lacking in China: Hang Seng gains 0.80%, while the continental China Shanghai Composite index loses 1.38%. An hour before the start of European trading, Indian assets are selected: Sensex gains 0.41%, and Nifty 0.33%.
Morning brings a continuation of the bullish trend in gold (+1.05%; 4073 USD/oz), which slightly corrected after yesterday’s gains to 4100 dollars per ounce. Silver (+1.63%) shows correlation, moving in tandem with gold. In the futures market for European and U.S. indices, red dominates, indicating a potentially modest cash market opening. The rotation from semiconductors to Big Techs may continue.
The macro report that captures investors’ attention is the NFP employment data, which we will learn today due to the U.S. Friday holiday and the resulting lack of trading.
