Taiwan Semiconductor Manufacturing Co. (TSMC) has announced that its revenue could drop by up to around 5% in the current quarter, and that it may cut this year's capital expenditures compared to last year. This is due to weak global demand.

The decline in the consumer price index in December brings the Federal Reserve closer to achieving its inflation target, though it is unlikely to signal any change in policy in the near future.The key inflation gauge fell by 0.1% last month, which was in line with what market analysts had predicted. This is the biggest drop that has been seen since April of 2020.

Volkswagen AG reported its lowest sales in more than a decade, but said it was confident business would improve this year as supply-chain blockages ease and semiconductors become more easily available. The company said it was seeing positive signs in some of its key markets, and was working to increase production to meet demand.

The dollar continued its recent decline, losing 0.8% and falling nearly 10% over the past three months. Speculators have been betting against the dollar and in favor of gold lately, hoping for a reversal of 2022’s performances

Inflation in the United States eased in December for the sixth consecutive month, after reaching a peak in mid-2022. This was due to the aggressive interest rate hikes by the Federal Reserve, as well as signs that the economy was cooling down.‍

Shares in the Asia-Pacific region were mostly higher on Thursday as investors looked ahead to the release of the U.S. consumer price index report. Economists expect inflation to have cooled in December, which could signal to the Federal Reserve that previous interest rates hikes have had their intended effects.

The Europe Stoxx 600 index hit its highest level since April 2022 Thursday morning, but then fell sharply after the release of U.S. inflation data.‍The Stoxx 600 index traded up 0.8% during early afternoon deals, with most sectors and major bourses in positive territory.