Nvidia disappoints, bitcoin nears $100K
A look at the day ahead in European and global markets from Ankur Banerjee
The prospect of slowing sales growth at AI juggernaut Nvidia and simmering worries over geopolitical tensions are keeping investors on edge but bitcoin keeps marching upward, undeterred, towards $100,000 on bets that Trump 2.0 will be crypto-friendly.
Futures indicate that European stock markets are set for a subdued open as investors digest Nvidia's NVDA.O projection of its slowest revenue growth in seven quarters. For investors used to the AI darling blowing past all estimates, the numbers proved disappointing.
The forecast will likely weigh on suppliers and the broader markets given Nvidia's place at the centre of all things AI, which has driven most of the market gains in recent months.
With few economic readings due during the European session, the region's tech stocks .SX8P, which had already fallen to three-and-a-half-month lows this week, will likely weigh down the markets on Thursday.
Indian conglomerate Adani Group was in the spotlight after its chairman Gautam Adani was indicted in New York over his suspected role in a $265 million bribery scheme, according to U.S. prosecutors.
The fallout for the Adani empire, which was rocked by a short-seller attack in February 2023, was immediate, with shares in the conglomerate's listed companies tumbling between 10% and 20%. Its dollar bonds also fell.
In the currency markets, the dollar remained on the front foot, with the dollar index =USD hovering close to a one-year high touched last week.FRX/
The dollar has been on the rise since Donald Trump's decisive victory early this month as investors expect his proposed tariffs will likely be inflationary, keeping U.S. rates higher for longer.
The talk of the town though remains bitcoin BTC=, which is up about 40% in the two weeks since the election as investors expect the Trump administration to set friendlier regulations for the crypto sector.
The biggest cryptocurrency touched a record high of $97,798 in Asian hours, with $100,000 not far off.
Key developments that could influence markets on Thursday:
Economic events: France business climate for November; euro zone consumer confidence flash for Nov
Nvidia's triple-digit growth comes to an end https://reut.rs/4fsHKtH
Bitcoin price in US dollars https://reut.rs/4eEOl2U
By Ankur Banerjee in Singapore; Editing by Edmund Klamann
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
