European stock futures higher; Nvidia results boost sentiment By Investing.com
[ad_1]
© Reuters
Investing.com – European stock markets are expected to open higher Thursday, with risk sentiment boosted by stellar earnings from chip maker Nvidia (NASDAQ:) as well as rising expectations soft economic data will prompt central banks to end their rate-hiking cycles.
At 02:00 ET (06:00 GMT), the contract in Germany traded 0.5% higher, in France climbed 0.7% and the contract in the U.K. rose 0.5%.
Stellar Nvidia results boost sentiment
Nvidia reported better-than-expected second-quarter late Wednesday, and also presented consensus-beating guidance for the third quarter as the world’s most valuable chipmaker benefited from a boom in artificial intelligence development.
The stock market darling also announced a bumper $25 billion buyback program, prompting sharp gains premarket and likely boosting the tech sector in both the Asian and European markets.
ECB to pause in September?
Investors have also been buoyed by the raised likelihood that the will pause hiking interest rates in September, as weak business activity data pointed to deepening economic pain in Europe.
German business activity contracted at the fastest pace in over three years in August, while Britain’s business activity contracted unexpectedly, raising recession risks.
“The risk that the ECB has already overtightened is significant. [Today’s] PMI release reduces the chances of a September rate hike (our base case) and increases the chance that rate cuts will come earlier than most Governing Council members thought,” said economists at Citigroup, in a note.
Central bankers convene at Jackson Hole
ECB President and Bank of England Governor are scheduled to speak on Friday at the Federal Reserve’s Jackson Hole symposium.
That said, Fed Chair ’s speech is likely to be the event’s highlight, with investors set to parse through his every word to figure out the next steps in monetary policy.
Crude slips on growth fears
Oil prices edged lower Thursday as a series of weak PMI readings spurred concerns over slowing economic growth, likely hitting future global demand.
Data on Wednesday also showed an unexpected, substantial build in U.S. and distillate inventories over the past week, which pointed to weakening U.S. fuel demand and largely overshadowed a bigger-than-expected draw in broader .
By 02:00 ET, the futures traded 0.3% lower at $78.69 a barrel, while the contract dropped 0.2% to $83.06.
Additionally, rose 0.1% to $1,949.60/oz, while traded 0.1% higher at 1.0871.
[ad_2]
Source link
© Reuters
Investing.com – European stock markets are expected to open higher Thursday, with risk sentiment boosted by stellar earnings from chip maker Nvidia (NASDAQ:) as well as rising expectations soft economic data will prompt central banks to end their rate-hiking cycles.
At 02:00 ET (06:00 GMT), the contract in Germany traded 0.5% higher, in France climbed 0.7% and the contract in the U.K. rose 0.5%.
Stellar Nvidia results boost sentiment
Nvidia reported better-than-expected second-quarter late Wednesday, and also presented consensus-beating guidance for the third quarter as the world’s most valuable chipmaker benefited from a boom in artificial intelligence development.
The stock market darling also announced a bumper $25 billion buyback program, prompting sharp gains premarket and likely boosting the tech sector in both the Asian and European markets.
ECB to pause in September?
Investors have also been buoyed by the raised likelihood that the will pause hiking interest rates in September, as weak business activity data pointed to deepening economic pain in Europe.
German business activity contracted at the fastest pace in over three years in August, while Britain’s business activity contracted unexpectedly, raising recession risks.
“The risk that the ECB has already overtightened is significant. [Today’s] PMI release reduces the chances of a September rate hike (our base case) and increases the chance that rate cuts will come earlier than most Governing Council members thought,” said economists at Citigroup, in a note.
Central bankers convene at Jackson Hole
ECB President and Bank of England Governor are scheduled to speak on Friday at the Federal Reserve’s Jackson Hole symposium.
That said, Fed Chair ’s speech is likely to be the event’s highlight, with investors set to parse through his every word to figure out the next steps in monetary policy.
Crude slips on growth fears
Oil prices edged lower Thursday as a series of weak PMI readings spurred concerns over slowing economic growth, likely hitting future global demand.
Data on Wednesday also showed an unexpected, substantial build in U.S. and distillate inventories over the past week, which pointed to weakening U.S. fuel demand and largely overshadowed a bigger-than-expected draw in broader .
By 02:00 ET, the futures traded 0.3% lower at $78.69 a barrel, while the contract dropped 0.2% to $83.06.
Additionally, rose 0.1% to $1,949.60/oz, while traded 0.1% higher at 1.0871.
About The Author
