Global Indices Face Common Challenges Amid Geopolitical and Economic Pressures The Nikkei 225, TSX Composite, and Tel Aviv Stock Exchange (TASE) are all experiencing downward pressure as global markets grapple with rising interest rates, geopolitical tensions, and uncertainty over energy supplies. Analysts highlight that the interconnected nature of these markets means challenges in one region often ripple across others, influencing investor sentiment and asset performance. The Nikkei 225 has declined by approximately 1.5% during the Thursday trading session, reflecting a broader risk-off environment. The index remains range-bound between 55,000 and 51,500, with traders anticipating continued volatility. Key factors influencing the Japanese market include oil prices and supply chain dynamics, as Japan relies heavily on energy imports. While the index remains above its 200-day exponential moving average (EMA), analysts suggest a potential rebound could present a buying opportunity, though this may take several days to materialize. In Toronto, the TSX Composite shows signs of resilience but is expected to face short-term pullbacks. Support levels at 32,000 and 31,000 are critical, with the index benefiting from its resource-heavy composition. Rising inflation and strong oil prices have bolstered commodities, but the market remains vulnerable to ongoing risk-off sentiment. Analysts note that while the index may struggle in the near term, it could offer value if prices dip, particularly given the role of financial and hard materials sectors. The TASE is projected to decline further, with support near 14,000 shekels. Technical indicators suggest a potential head-and-shoulders pattern, which could lead to a test of the 200-day EMA or even the 11,000 level.#central_banks #oil_prices #nikkei_225 #tsx_composite #tel_aviv_stock_exchange
Broadcom Forecasts Stronger Second-Quarter Revenue Amid AI Growth Chipmaker Broadcom (AVGO-Q) reported that its second-quarter revenue exceeded Wall Street expectations, signaling robust demand for advanced semiconductors used in data centers supporting artificial intelligence applications. The company also announced a new share repurchase program of up to $10 billion by year-end. CEO Hock Tan highlighted the company’s AI revenue growth, stating, “Our AI revenue growth is accelerating, and we expect AI semiconductor revenue to be $10.7 billion in Q2.” Broadcom’s projected quarterly revenue of approximately $22.0 billion surpassed analysts’ average estimate of $20.56 billion, according to data from LSEG. The company previously outlined plans to sell at least 1 million chips by 2027 using its stacked design technology, a target that could generate billions in revenue. However, growth in its infrastructure software segment slowed to 1% in the first quarter, falling short of analysts’ expectations of 2.6% growth to $6.88 billion. Shares of Broadcom rose 3.8% in extended trading following the announcement. Canadian Crude Oil Discount Narrows Amid Iran Conflict The price gap between heavy Canadian crude oil and U.S. benchmark WTI crude has narrowed significantly as geopolitical tensions disrupt Middle Eastern oil supplies. Analysts noted that the discount for heavy Canadian crude has tightened by $1.25 per barrel since last Friday, driven by increased demand from India and China amid Middle Eastern supply shortages. The Trans Mountain pipeline, which transports heavy crude from Alberta’s oil sands to British Columbia for export, is currently operating below full capacity.#broadcom #hock_tan #lseg #ai_revenue #tsx_composite
