📆 Thursday, May 23
► European stocks climbed, with the Stoxx 600 rising 0.2%, driven by a surge in the tech sector. This optimism was fueled by Nvidia's impressive earnings and sales forecast, which significantly exceeded analysts' expectations. Germany’s manufacturing PMI increased to 45.40 in May from 42.50 in April, and the composite PMI rose to 52.20 – indicating an improving economic outlook. However, France’s Flash Composite PMI fell to 49.1, moving from expansion to contraction territory. The Eurozone economy remains mixed and challenged – also by rising geopolitical uncertainty.
► US futures pointed to gains, with the S&P 500 currently 0.5% higher following Nvidia’s strong earnings report, which bolstered confidence in the tech sector. Nvidia’s revenue in Q1 at $26.04 billion beat the $24.65 billion predicted by analysts. This was supported by a 427% (!) year-on-year increase in sales in the data center sector (Nvidia's AI division). The company also announced a 10-for-1 stock split and boosted its quarterly dividend by 150%. Yesterday’s Federal Reserve’s minutes (from the April 30 – May 1 meeting) showed no rush to cut interest rate – but the impact on the USD and on US Treasury yields was minimal. The USD is little changed. Investors await more economic data and Fed announcements.
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