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Euro STOXX 600 gains 0.3%

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Chip optimism underpins tech stocks, Japan on holiday

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Gold hits a fresh high above $3,750 an ounce

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Dollar, bonds steady before Powell comments, PMIs

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Asian stock markets : https://tmsnrt.rs/2zpUAr4

(Updates to reflect prices in morning trading at European

hours)

By Tom Wilson and Wayne Cole

LONDON/SYDNEY, Sept 23 (Reuters) - Shares climbed

globally on Tuesday, fuelled by optimism around all things AI

luring money into technology stocks, while bets on U.S. interest

rate cuts lifted gold to a record high.

The EURO STOXX 600, which have tended to lag in the

rush to tech stocks, gained 0.4%, boosted by utilities, with

German and French indexes climbing 0.5% and

0.7% respectively.

Dutch chip equipment maker ASML dropped 1.2%,

however, keeping gains in check.

On Monday, Wall Street was led to another record as Nvidia

announced it would invest up to $100 billion in OpenAI

with the first data centre gear to be delivered in the second

half of 2026.

The seemingly inexorable rise in tech stocks attracted money

from momentum funds and option players, and fuelled gains for

wider indexes.

BIG TECH DRIVES GAINS, BENEFITS WIDER INDEXES

"It's been the Magnificent 7 driving the gains," Deutsche

Bank analysts wrote, referring to seven dominant tech companies

that have driven the U.S. stock market's growth.

"The profile of U.S. equity gains is looking very much like

2023 and 2024 again, where the annual gains are being driven by

a very narrow group of stocks."

Chris Weston, head of research at broker Pepperstone, noted

that investors were hedging their exposure to stocks by buying

gold.

The metal hit a record at $3,759.02 per ounce, and

was nearly 9% higher for the month so far.

S&P 500 futures were little changed, while Nasdaq

futures slipped 0.3%, after hitting new peaks overnight.

Investors were also focused on impending comments from U.S.

Federal Reserve officials including Chair Jerome Powell later in

the day, to assess the U.S. central bank's monetary policy

trajectory after it cut interest rates last week.

BOND YIELDS RECOVER AS DATA SHOWS GERMAN ACTIVITY SPED

UP

Euro zone bond yields erased losses after the release of

data on the region's business activity. The benchmark 10-year

German yield moved to 2.75%, flat on the day, after data showed

that

activity grew

in Europe's largest economy an accelerated pace in

September.

In Asia, chip sectors have benefited from the demand for

tech stocks, with South Korean stocks up 0.5%, having

surged over 9% this month.

Japan's Nikkei was closed for a holiday but has

climbed 6.5% so far in September, while Taiwan has risen

almost 7%.

Chinese blue chips recovered losses to trade flat,

its liquidity-fuelled bull run petering out in recent days.

MSCI's broadest index of Asia-Pacific shares outside Japan

eked out a miniscule daily gain, and is still

5.5% higher on the month.

MIXED MESSAGING FROM FED, DOLLAR CONTINUES TO SEE-SAW

Equities globally have been underpinned by expectations of a

series of further rate cuts from the Fed following last week's

easing.

Futures imply around a 90% chance of a further quarter-point

rate cut in October, and a 75% probability of an easing in

December as well.

Markets remain doggedly dovish despite mixed messaging from

the Fed itself. Speaking on Monday, new Fed Governor Stephen

Miran argued for sharply lower rates, but three of his

colleagues said the central bank needed to remain cautious about

inflation.

In currency markets, the dollar continued its recent see-saw

pattern, easing overnight after three sessions of gains.

The euro was steady at $1.179, after bouncing from

a $1.1726 low on Monday, while the dollar had faded to 147.72

yen from a high around 148.37.

Sweden's crown held steady at 9.34 per dollar

after the central bank cut interest rates to 1.75% and said

rates were expected to remain on hold for some time.

Oil prices struggled as concerns of oversupply outweighed

geopolitical tensions in Russia and the Middle East.

Brent eased 0.4% to $66.27 a barrel, while U.S.

crude slipped 0.3% to $62.02 per barrel.