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[introduction] overseas markets collectively surged!

china fund news reporter taylor

brothers and sisters, overseas markets are collectively rising tonight!

german stocks hit record highs

tonight, the german dax index rose by 0.8% at one point, reaching a high of 18,936.04 points, breaking the historical record high recorded on may 15.

on the news front, germany's inflation rate unexpectedly dropped to 2% in august!

germany's consumer price index fell to 2% in august, preliminary data from the federal statistical office destatis showed on thursday, below analysts' expectations. a reuters poll had forecast cpi to be 2.3%.

core inflation, which excludes energy and food costs, rose 2.8% from a year earlier, down slightly from 2.9% in july. energy costs fell 5.1% in august from a year earlier, destatis data showed.

several major german states reported slowing inflation earlier on thursday. the data came a day before euro zone inflation data will be closely watched by investors for clues on the prospects for future european central bank rate cuts.

carsten brzeski, an economist at ing, said the unexpectedly sharp drop in german inflation was good news for the european central bank, which is seeking assurances for another rate cut. "it finally shows early signs of a broader disinflationary trend that goes beyond the impact of energy prices," brzeski said. while wage growth in germany and the eurozone remains high, it is too early to lift the inflation alarm, but brzeski wrote in a report that the decline in price inflation clearly favors a september rate cut by the european central bank.

meanwhile, spain's preliminary coordinated inflation rate was 2.4% in august, down from 2.9% in july and lower than economists' forecast of 2.5%.

in addition, stock markets in european countries rose collectively.

us stocks rose

u.s. stocks also rose tonight, seemingly shaking off some of the impact of nvidia's share price decline, with the dow jones industrial average up more than 300 points and the nasdaq up more than 1%.

nvidia, known as the "first stock in the universe," fell 3%. although nvidia's second-quarter sales revenue continued to double, its guidance for the quarter failed to meet wall street's most optimistic expectations, and there were reports that its top-of-the-line blackwell chip had production problems. this was enough to throw the market into chaos overnight, but the market was relatively calm in early trading on thursday as investors speculated that the artificial intelligence revolution has not subsided.

morgan stanley said that nvidia's second-quarter performance was excellent, but this was far from enough and the market's expectations for this top student were too high.

“death, taxes and an nvda earnings beat are the three things you can be sure of,” said ryan detrick, chief market strategist at carson group. “the problem is that the beat was much smaller than we’ve seen before. even though future guidance was raised, it was not to the level of previous quarters. this is a great company that is still growing revenue at a rate of 122%, but it seems like expectations were set a little too high this earnings season.”

in terms of economic data, the second quarter gdp and personal consumption data of the united states were unexpectedly revised upward. according to data released by the bureau of economic analysis on thursday, the u.s. gross domestic product (gdp) grew by 3% on an annualized basis from april to june, higher than the previous estimate of 2.8%. the main growth engine of the economy was personal spending, which grew by 2.9%, compared with the previous estimate of 2.3%.

another government report on thursday showed initial claims for unemployment benefits were little changed at 231,000.

on the inflation front, the fed's preferred measure, the personal consumption expenditures price index (pce), rose at an annual rate of 2.5% in the second quarter, slightly below initial forecasts. excluding food and energy, the core pce index rose 2.8%, compared with a previous estimate of 2.9%.

analysts said this morning's data sent a message of "steady progress." weekly unemployment claims were slightly lower than last week, and gdp was slightly revised upward. the economy does not appear to have fallen off a cliff, and in the current market, good news is good news. while the economy is not necessarily out of the woods, the u.s. economy is more resilient than many people think. today's report should convince investors that the fed can still achieve a soft landing.

in addition, chinese stocks collectively rebounded and surged tonight!