Global Markets Stabilize Amid Nvidia Decline: Implications for Investors and Tech Enterprises
سنغافورة: Global equity markets saw a modest rise on Thursday, overcoming pressures in technology shares following Nvidia’s disappointing quarterly results, which did not meet investor expectations.
The MSCI World Equity Index increased by 0.1%, while Europe’s Stoxx 600 index rose by 0.4%. Futures suggested a stable opening for both the S&P 500 and Nasdaq Composite indices.
In pre-market trading in the U.S., Nvidia shares fell by 2.2% after the company reported data center revenues of $41.1 billion, slightly below analyst predictions of $41.3 billion. This development raised concerns about demand from China, even as Nvidia projected stronger revenues for the upcoming quarter. Mark Matthews, head of research for Asia at Bank Julius Baer in Singapore, noted, “Granted it was minor, but a miss is odd for this company.”
European semiconductor stocks exhibited mixed performance; ASML’s shares dipped, while Taiwan Semiconductor Manufacturing Co. in Asia saw a 1.1% drop. Conversely, Chinese competitor SMIC surged by 9.5%.
In European news, political developments in France garnered attention as Prime Minister Francois Bayrou announced plans to request a confidence vote on his contentious debt-reduction program. France’s 10-year government bond yield eased slightly but remained close to its highest level since March, while the CAC 40 index gained 1%.
Among individual corporate performers, Pernod Ricard saw a notable jump of 7% after reporting a smaller-than-anticipated decline in annual sales and profits. However, analysts at Citi cautioned that political risks could adversely affect French equities, potentially leading to a downside of 5%.
The gap between the yields of French and German 10-year bonds narrowed after reaching a seven-month high earlier this week. The euro remained stable at $1.1635, maintaining a three-week winning streak that has contributed to a 2% monthly gain.
“French politics are dampening upside potential for the euro-dollar, but the bigger story is what happens with the Fed,” remarked Lee Hardman, senior FX analyst at MUFG.
Expectations for a U.S. rate cut are strengthening. Current data from CME’s FedWatch tool indicates an 88.7% chance of a 25-basis point cut at the Federal Reserve’s meeting on September 17, up from 61.9% a month prior.
New York Fed President John Williams stated that risks are becoming “more balanced,” with future decisions dependent on incoming economic data. The two-year U.S. Treasury yield held steady at 3.61%, close to a four-month low.
In commodities, Brent crude fell by 0.5% ل $67.67 per barrel, while spot gold remained unchanged at $3,399.60 per ounce, on track for a weekly increase of nearly 1%. — Reuters
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The recent fluctuations in global markets, particularly around technology sector performance و geopolitical concerns in Europe, signal a cautious environment for businesses in Oman. The modest rise in global equities offers opportunities for investment, especially in sectors that may benefit from expected US rate cuts; however, the risks associated with fluctuating demand and political instability in Europe could impact trade dynamics. Smart investors should closely monitor shifts in tech demand, particularly related to Chinese market dynamics, and consider diversifying their portfolios to mitigate potential volatility.
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