AMD CEO Lisa Su: Samsung Electronics and SK Hynix strongly support HBM

According to Nikkei, Murata Manufacturing, located in Okayama, will increase production of ceramic materials used in electronic components. With demand for components related to artificial intelligence (AI) expected to rise, the company will invest approximately 9 billion yen to expand its production lines.

European stock markets opened weaker on Wednesday, in contrast to the record highs reached by U.S. stocks overnight. Brent crude oil prices climbed back above $100 per barrel as markets focused on supply risks related to Houthi attacks in Saudi Arabia and storms in the Gulf of Mexico. Meanwhile, the 10-year U.S. Treasury yield surged above 5.30%, bringing inflation and high interest rate pressures back into focus. There was some positive news from France, as 10-year government bond yields temporarily declined after opposition far-right leader Le Pen pledged to cut spending, but yields later rebounded to 4.83%. In addition, U.S. equity index futures are currently largely flat, with S&P 500 futures unchanged and Nasdaq futures down just 0.1%, reflecting continued caution in overall market sentiment. Investors will next watch the $3.9 billion 10-year U.S. Treasury auction and the Federal Reserve's September meeting minutes.

(1) In early European trading, French government bond yields rose, outpacing similar eurozone bonds. (2) French government bonds remain in focus as the government sticks to its plan to cap the deficit at 5% of GDP during budget negotiations. (3) In a report, ING rate strategists Michiel Tukker and Benjamin Schroder noted that far-right leader Marine Le Pen’s fiscal plans may temporarily support French bonds, but lack of credibility and future election uncertainty still point to risks of wider spreads. (4) Eurozone government bond yields also followed U.S. Treasury yields higher as the market awaits the release of the latest Federal Reserve meeting minutes. (5) The yield on the German 10-year government bond rose by 2.2 basis points to around 3.5%, while the French 10-year government bond yield climbed 5.4 basis points to roughly 4.8%.

(1) Diesel spot prices are holding steady above their previous breakout levels, demonstrating considerable strength. (2) Despite recent volatility in crude oil, diesel has refused to relinquish its gains, indicating that the physical refined products market remains robust. (3) Once diesel moves higher again, it is expected to drive crude oil prices upward simultaneously. (4) Crude oil itself is currently approaching cyclical lows. (5) When diesel confirms the start of its next rally from current levels, this could trigger the next major move in crude oil prices.