Paris (AFP) – European and Asian stock markets mostly rose Wednesday as investors eagerly awaited the latest earnings results from US chip giant Nvidia, a bellwether for the tech sector. Traders are also awaiting key US economic data due out later this week that could shine a light on the size of an expected interest-rate cut next month. But all eyes are on the release of Nvidia’s second-quarter results after US markets close on Wednesday.
“The expectations for Nvidia’s Q2 results are sky-high,” said Swissquote Bank analyst Ipek Ozkardeskaya. London’s FTSE 100 index was down in early afternoon deals, but Paris and Frankfurt were up. Tokyo finished higher while Hong Kong fell. Ozkardeskaya pointed to the company’s outsized weight on the broad-based S&P 500 index, where it has accounted for a third of its gains this year. “So the company’s earnings announcement day is naturally a big day for the market,” she said.
The market expects Nvidia to post sales ranging between $27 billion and $32 billion, more than double from a year ago, she said. But analysts also warned that the markets could be in for a rough time if Nvidia misses forecasts. “This is the one that could either lift all boats or sink the entire fleet,” said analyst Stephen Innes in his Dark Side Of The Boom newsletter. “Nvidia’s influence is undeniable, making it nearly impossible to take your eyes off it.”
Nvidia has seen profits soar thanks to demand for its powerful GPU chips, which have set the industry’s pace in pushing new advances in artificial intelligence. Its success has pushed its market valuation over the $3 trillion mark. Investors are also waiting for the release of US economic growth data on Thursday and the Federal Reserve’s favored gauge of inflation on Friday, followed by jobs figures next week. Fed chief Jerome Powell said last week that the central bank was ready to cut rates, which were raised to a 23-year high in efforts to combat inflation, but he did not indicate by how much. The Fed’s next rate decision will be made at its September 17-18 meeting.
– Key figures around 1140 GMT –
London – FTSE 100: DOWN 0.1 percent at 8,334.58
Paris – CAC 40: UP 0.6 percent at 7,607.58
Frankfurt – DAX: UP 0.9 percent at 18,842.82
Tokyo – Nikkei 225: UP 0.2 percent at 38,371.76 (close)
Hong Kong – Hang Seng Index: DOWN 1.0 percent at 17,692.45 (close)
Shanghai – Composite: DOWN 0.4 percent at 2,837.43 (close)
Dollar/yen: UP at 144.38 yen from 143.96 yen on Tuesday
Euro/dollar: DOWN at $1.1128 from $1.1185
Pound/dollar: DOWN at $1.3222 from $1.3261
Euro/pound: DOWN at 84.18 pence from 84.34 pence
West Texas Intermediate: DOWN 2.0 percent at $74.01 per barrel
Brent North Sea Crude: DOWN 1.8 percent at $78.11 per barrel
New York – Dow: FLAT at 41,250.50 (close)
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© 2024 AFP
