- European markets are opening higher today, fuelled by positive comments regarding Ukraine’s resource agreement with the US and a strong performance in Chinese equities.
- US indices are gradually recovering from yesterday’s losses, which were triggered by the weakest Conference Board reading since 2021.
- All eyes will be on Nvidia’s (NVDA.US) earnings report today. From a macroeconomic perspective, only secondary data releases are expected, including US new home sales and the EIA crude oil inventory change.
US futures suggest slightly improvement in investor sentiment ahead of Nvidia’s earnings release, with just a few hours remaining before the quarterly report of the world’s second-largest company. The options market is pricing in around 10% volatility following the report. Investors will closely analyse the report for any signs or comments on a potential slowdown in AI infrastructure investments, especially after the release of China’s DeepSeek and other AI models, which have sent ripples through the technology sector.
Additionally, investors will pay close attention to any potential issues with the production and distribution of Nvidia’s next-generation Blackwell AI chips and the company’s remarks on the China market, which remains affected by US export restrictions. Singapore has also come under scrutiny, with speculation suggesting it may serve as a redistribution hub for Nvidia’s chips to China.
Wall Street expects revenue growth of 73% year-over-year (YoY) to $38.2 billion and a 64% YoY increase in earnings per share (EPS) to $0.84. Unless Nvidia delivers any extremely negative surprises, the market may interpret the results favourably, reinforcing the expectation that AI infrastructure investments will continue to expand.
Economic Calendar
7 AM GMT – GfK Consumer Sentiment (Germany): -24.6 vs -21.6 forecast and -22.4 previous
8 AM GMT – Consumer Confidence (France): 93 vs 92 forecast and 92 previous
3 PM GMT – US New Home Sales: 680K forecast vs 698K previous (-2.8% MoM vs +3.6% previous)
3:30 PM GMT– EIA Crude Oil Inventory Change (US): +2.4M forecast vs +4.6M previous
- Gasoline Inventories: -1.4M vs -0.15M previous
- Distillate Inventories: -2.76M vs -2.05M previous
Corporate Earnings
- Nvidia, Salesforce (Post-US Session)
Central Bank Speeches
1:30 PM GMT – Fed’s Barkin
2:30 PM GMT – BoE’s Dhingra
5:00 PM GMT – Fed’s Bostic
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