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US futures weaken on concerns over China’s chip regulation

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U.S. futures fell Wednesday on concerns the Biden administration is preparing new restrictions on exports of artificial intelligence computer chips to China.

Contracts tracking the Wall Street benchmark S&P 500 fell 0.2%, while contracts tracking the Nasdaq 100 fell 0.4% ahead of New York trading.

The move comes after a Wall Street Journal report that the United States could impose new restrictions on some types of chips, adding to tensions between the two countries. Nvidia fell 3.6% in premarket trading, while Advanced Micro Devices fell 2.9%.

European stocks rose as stocks caught up with Wall Street’s overnight rally. The pan-European market Stoxx 600 index rose 0.6%, while France’s Cac 40 and Germany’s Dax rose 0.8%, led by real estate and industrial stocks.

The move comes after European Central Bank Deputy Governor Luis de Guindos said at an annual forum in Portugal that eurozone rates would almost certainly rise at the next policy meeting in July, but questioned the prospects of a rate hike. It happened as investors digested Deputy Governor Luis De Guindos’ remarks that Second rise in September.

“I think July is a fait accompli,” Guindos said at the ECB’s annual meeting in Portugal, according to Reuters. “I think it will open in September.”

The central bank finally raised the benchmark deposit rate by a quarter of a percentage point in June to 3.5%, the highest level in 22 years.

The ECB’s decision will be informed by the eurozone inflation report due out on Friday, but a Reuters poll of economists showed inflation slowed to 5.6% in the year to June from 6.1% the previous month. is expected to.

Traders were also preparing to hear what Federal Reserve Chairman Jerome Powell would say next. He had previously suggested that the People’s Bank of China (PBOC) was likely to raise the benchmark federal funds rate two more times by the end of the year.

The S&P 500 closed higher a day earlier, and the Nasdaq Composite also posted its first daily gain in a month, improving investor confidence after both indexes fell for much of last week. showed that.

Blue chip stocks boosted by new manufacturing and consumer confidence data showing continued economic growth in U.S. economy after 1-year rally degree of interest.

“The bullishness remains. After a week and a half of pullbacks, it’s time to rock and roll again,” said Mike Zigmont, head of research and trading at Harvest Volatility.

Australia’s S&P/ASX 200 index increased expectations of a moratorium on rate hikes by the Reserve Bank of Australia after official data showed inflation cooled at a faster pace than expected in May. increased by 1.1%.

Elsewhere in Asia, trading was mixed, with China’s CSI300 index down 0.1% while Hong Kong’s Hang Seng Index rose 0.1%. Japan’s TOPIX rose 2% on strong gains in the tech sector.

https://www.ft.com/content/120163b4-5bf3-4a84-b4d9-5872effa5b94 US futures weaken on concerns over China’s chip regulation

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