London (AFP) – Major stock markets traded mixed Thursday after Nvidia’s quarterly earnings beat expectations, but shares in the AI powerhouse slipped over worries about its stalled business in China. Investors had keenly awaited the key earnings update late Wednesday from the California-based firm, whose robust growth has largely driven strong gains for tech stocks in recent months. Nvidia posted a profit of $26.4 billion on record revenue of $46.7 billion in the second quarter, but its shares fell in after-market US trading as important data centre revenue declined.
The earnings report comes amid market worries over a spending bubble in the artificial intelligence sector that could burst and hurt the chip giant’s fortunes. “The market seems to be asking whether Nvidia can keep up this pace as competition intensifies and AI enthusiasm starts to look a little overbought,” noted Joshua Mahony, chief market analyst at traders Scope Markets. The dollar dropped against main rivals awaiting US growth data due Thursday that should provide clues regarding the impact of President Donald Trump’s tariffs.
It could offer insight into the outlook for US interest rates, with the Federal Reserve eyeing further cuts to borrowing costs in a bid to boost the world’s biggest economy. Japan’s media on Thursday reported that Tokyo’s chief negotiator for the country’s trade agreement with the United States, Ryosei Akazawa, had postponed a planned trip to Washington. Akazawa said Wednesday he hoped to use the trip to pressure the US administration to implement reduced tariffs agreed upon in July.
In Europe, the Paris stock market extended its recovery, having tumbled early in the week on fears that France’s minority government could be toppled. This was after Prime Minister Francois Bayrou proposed a confidence vote over his proposed budget cuts. France’s borrowing costs have soared since the vote was called Monday, as the government wrestles with how to find around 44 billion euros ($51 billion) in savings.
Oil prices fell Thursday owing to a healthy supply situation, according to analysts.
– Key figures at around 1030 GMT –
– London – FTSE 100: DOWN 0.5 percent at 9,213.00 points
– Paris – CAC 40: UP 0.2 percent at 7,761.32
– Frankfurt – DAX: DOWN 0.1 percent at 24,031.63
– Tokyo – Nikkei 225: UP 0.7 percent at 42,828.79 (close)
– Hong Kong – Hang Seng Index: DOWN 0.8 percent at 24,998.82 (close)
– Shanghai – Composite: UP 1.1 percent at 3,843.60 (close)
– New York – Dow: UP 0.3 percent at 45,565.23 points (close)
– Euro/dollar: UP at $1.1667 from $1.1633 on Wednesday
– Pound/dollar: UP at 1.3523 from 1.3496
– Dollar/yen: DOWN at 147.00 from 147.51 yen
– Euro/pound: UP at 86.29 from 86.20 pence
– West Texas Intermediate: DOWN 0.5 percent at $63.86 per barrel
– Brent North Sea Crude: DOWN 0.5 percent at $67.13 per barrel
© 2024 AFP
