by Margaryta Kirakosian
European stocks rose along with US index futures as traders looked ahead to Nvidia Corp.’s results later Wednesday for fresh momentum.
The Stoxx Europe 600 index was up 0.5% and contracts on the S&P 500 and Nasdaq 100 pointed to a positive US open after Wall Street benchmarks recovered from a bout of volatility following the escalation in Russia’s war against Ukraine. Bloomberg’s dollar gauge rose 0.3%, rebounding from a three-day drop. The 10-year US Treasury yield climbed two basis points after falling yesterday as investors fled to haven assets.
Investors will scrutinize Nvidia’s quarterly results to gauge if the world’s most valuable company can continue its remarkable run fueled by spending on artificial intelligence hardware, with the chipmaker steady in premarket trading after rising 4.9% in the previous session. Trading in options signals the results will be the most important catalyst left this year — more than the Federal Reserve’s December meeting, according to Barclays Plc strategists.
“Expectations are high, and the market will go into Nvidia’s earnings announcement positioned long, looking for a fifth consecutive quarterly earnings beat,” said Tony Sycamore, a market analyst at IG Australia. “Given Nvidia’s significant impact, its performance will undoubtedly drive sentiment in the tech sector and the broader market into year-end.”
In the UK, the FTSE 100 underperformed after the latest inflation reading came in hotter than anticipated, with traders paring back expectations for Bank of England rate cuts. Gilts dropped.
Among individual movers, Sage Group Plc was up as much as 22%, the biggest intraday gain on record, after the software firm announced a £400 million ($507 million) buyback and reported stronger revenues. La Française de Jeux SAEM shares fell as much as 6.9%, the biggest drop in seven weeks, after a shareholder sold 4.7 million shares in the gaming equipment company at a discount.
Traders are also monitoring Donald Trump’s administration picks, especially his selection for the Treasury secretary role. Former Federal Reserve Governor Kevin Warsh and Apollo Global Management’s Marc Rowan are in contention, according to people familiar with the matter. Meanwhile, Trump tapped Cantor Fitzgerald LP Chief Executive Officer Howard Lutnick to lead the Commerce Department, a key role to facilitate his tariff and trade policies.
Whoever gets the Treasury secretary post will be instrumental in executing Trump’s policies, according to Subitha Subramaniam, chief economist at Sarasin & Partners.
“There will be, I imagine, a huge amount of relief if there is a more of an institutionalist character,” Subramaniam said. “But I don’t know if we can actually take confidence that person’s personal preferences will supersede the overarching Trump’s agenda.”
Bitcoin set another all-time high, supported by a series of developments highlighting the deepening embrace of the digital-asset industry in the US under crypto cheerleader Trump. Oil edged toward $70 a barrel in New York as an industry report signaled a build in US crude inventories ahead of official government figures.
Key events this week:
Some of the main moves in markets:
This story was produced with the assistance of Bloomberg Automation.
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