St still rallying, US-China chip deal boosts sector

(Il Sole 24 Ore Radiocor) - Stmicroelectronics is rallying at Piazza Affari after the jump on the day before. The stock of the Italian-French giant is the best on the list, approaching the intraday highs since September 2024 (27.635 euros on September 30). The decision by Washington to eliminate some restrictions on the export of chip design software to China is giving impetus to purchases. This new sign of détente is generally supporting European stocks in the sector: Siemens and Infineon are running in Frankfurt, while Asml is weaker in Amsterdam. On the evening of the day before, Nvidia had closed in a sprint at +2.5% on Wall Street.

In detail, as part of the recent trade agreement between the US and China, the US Department of Commerce has lifted restrictions on the export of chip design technology to the Asian country. The announcement came from two Californian chip software developers, Synopsys and Cadence Design, who yesterday received a letter on the matter from the Bureau of Industry and Security of the US Department of Commerce: according to the communication, the restrictions on exports to China have been lifted with immediate effect. In a note, Synopsys stated that it is now "working to restore access to recently restricted products in China" and that it is evaluating the impacts that the measure - in force since May 29 - is having on its operating and financial results. Cadence also confirmed the lifting of the restrictions communicated at the end of May and announced that access to software and technology by affected customers is being restored in line with US export laws.

The communication from the U.S. Department of Commerce also reached Siemens, which has resumed sales and support to Chinese customers . "We appreciate our customers' patience as we navigate the rapidly changing global trade landscape and understand the inconvenience this may have caused," the company said in a statement.