► Global markets are little changed as US investors prepare for holidays. Stoxx Europe 600 Index is trading slightly higher, up 0.2%, with mixed sector performance as investors adopt a cautious stance ahead of Thanksgiving. Key European bond yields, including Germany's 10-year yield (down 4 basis points to 2.58%) and the U.K.'s 10-year yield (down 3 basis points to 4.10%), reflected a more muted sentiment in the bond markets. The European Central Bank's recent comments still suggest a plateau in interest rate hikes but hikes being still in distance.
► US equity futures indicate a quiet session with low trading volume ahead of the Thanksgiving holiday, with Nasdaq futures slightly down by 0.1% and S&P 500 futures flat. The Federal Reserve's latest meeting minutes suggest a careful cautious approach, mentioned possible future rate hikes (as always) and did not mention rate cuts at all – the overall superficial hawkish meeting minutes, however, had little impact on markets. Before the meeting minutes, the USD strengthened a bit.
► Nvidia's latest earnings have sparked varied reactions in the market. Despite posting a staggering 206% revenue increase year-over-year, the stock saw initial gains erased, currently still trading 1.0% lower in pre-market trading. It's hard to image what investors wanted to see as the earnings report was again very strong and easily beat already very optimistic expectations. Skepticism about the sustainability of these growth rates seems to be weighing on investor sentiment as well as comments that the China business has a lot of uncertainty. However, Nvidia's announcement of the GH200 GPU and the robust demand for its AI chips, particularly the ChatGPT revolution, underscore the company's continued market dominance, revenue potential and excellent margins. Demand for the expensive H100 chip (the predecessor to the GH200) remains high and every unit produced is sold, underscoring Nvidia's leadership in enabling AI innovation with its still unmatched AI GPU chips.
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