Key Points

• Nvidia Halts China-Focused Chip Production: Nvidia asked suppliers to pause H20 chip output after Beijing urged firms like Alibaba and Tencent to stop purchases, putting $20B in China sales at risk.
• Asia-Pacific Stocks Mixed Ahead of Powell Speech: Regional markets traded higher overall, with China’s CSI 300 up 2% and Japan’s inflation cooling, as investors await Fed Chair Powell’s Jackson Hole remarks.
• EU-U.S. Trade Deal Weighs on European Markets: European equities slipped as details of Brussels’ $750B U.S. energy commitment and conditional tariff relief pressured autos, while pharma gained on capped duties.
• Trump’s Pushback Sends Solar Sector Tumbling: Renewables sold off sharply after Trump pledged to block new wind and solar projects, with First Solar and Canadian Solar leading steep declines.

Nvidia Faces Fresh Setback in China Over H20 Chips

Nvidia has instructed suppliers including Amkor Technology, Samsung Electronics, and Foxconn to pause production of its H20 chips after Beijing reportedly told local tech firms to halt purchases over national security concerns. The move deepens uncertainty around Nvidia’s access to the critical Chinese market, where it risks over $20 billion in annual sales.

Despite recent U.S. approval for H20 exports, China’s scrutiny underscores the growing tech rift between Washington and Beijing. Nvidia CEO Jensen Huang said discussions with regulators continue, but the company already booked a $4.5 billion writedown on unsold H20 inventory earlier this year.

Asia-Pacific Markets Edge Higher Ahead of Powell’s Remarks

Asian equities traded mixed on Friday as investors awaited Federal Reserve Chair Jerome Powell’s speech at Jackson Hole for guidance on U.S. interest rate policy.

China’s CSI 300 led regional gains with a 2% jump, while Hong Kong’s Hang Seng added 0.3% and South Korea’s Kospi rose 0.9%.

Japan’s Nikkei finished flat, though the Topix gained 0.6%.

Australia’s ASX 200 slipped 0.6% after briefly topping 9,000 points, pressured by cooling but still elevated inflation at 3.1%. India’s Nifty 50 fell 0.7%.

On Wall Street, the S&P 500 logged a fifth straight decline, reflecting caution ahead of Powell’s address.

European Markets Slip as EU-U.S. Trade Deal Details Unfold

European equities edged lower on Friday as investors digested new details of the EU-U.S. trade agreement.

The Stoxx 600 slipped 0.1%, with the FTSE 100 down 0.2% and the DAX off 0.2%, while France’s CAC 40 was little changed. The deal, finalized last month, confirmed $750 billion in EU energy purchases and at least $600 billion of investment into the U.S., in exchange for capped tariffs of 15% on most EU goods.

Pharmaceutical stocks rose 0.6% after avoiding punitive levies, while auto shares weakened as tariff relief remained conditional.

Meanwhile, German GDP contracted 0.3% in Q2, deepening recession concerns.

Solar Stocks Slide as Trump Blocks New Renewable Projects

Renewable energy shares tumbled Thursday after President Donald Trump vowed to block new solar and wind developments, intensifying his administration’s rollback of clean energy support. First Solar sank nearly 7%, while Sunrun fell 8.2%, Enphase dropped 4.2%, and SolarEdge lost 4.7%. Canadian Solar slumped almost 20% after missing earnings expectations and cutting revenue guidance.

The sell-off underscores mounting policy headwinds, with tax incentives set to phase out by 2027 and federal permitting centralized under the Interior Department. Trump’s rhetoric fueled further pressure, despite data showing solar and storage remain the most cost-efficient response to rising U.S. energy demand.

Conclusion

Nvidia’s supply chain pause underscores the deepening strain in U.S.–China tech relations, while Asia-Pacific equities remain tied to monetary signals from the Federal Reserve.

In Europe, conditional tariff relief under the new EU-U.S. trade pact highlights ongoing trade uncertainties, particularly for autos.

Meanwhile, the sharp sell-off in renewables reflects mounting policy headwinds in the U.S.

Global markets are navigating a complex mix of geopolitical risks, policy shifts, and sector-specific pressures. Cross-border dynamics and political agendas are increasingly shaping market sentiment, requiring investors to stay agile and diversified in their positioning.

Investment Insights

• Semiconductors: Nvidia’s halted H20 production highlights rising U.S.-China tech frictions; investors should monitor supply chain exposure and diversify into regions less vulnerable to geopolitical restrictions.
• Asia-Pacific Equities: Powell’s Jackson Hole remarks remain the key catalyst; positioning ahead of potential Fed guidance may help capture short-term volatility.
• European Equities: The EU-U.S. trade deal offers partial tariff relief but conditional terms for autos suggest uneven benefits; selective exposure to pharmaceuticals and energy may prove more resilient.
• Renewables: Policy headwinds under Trump pose material downside risk; near-term resilience may favor traditional energy and utilities over solar and wind equities.

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