📆 Wednesday, November 20
► European stocks are trading higher with also US stocks edging up. The Stoxx Europe 600 index is up 0.5%, led by gains in industrial and tech stocks. Investors remain optimistic ahead of Nvidia's earnings report, which is expected to set the tone for global tech sentiment. UK inflation rose more than expected, reaching 2.3% YoY in October, driven by higher energy and housing costs. Core inflation edged up to 3.3%, adding pressure on the Bank of England to rethink its plans for rate cuts. This bolstered the GBP for the third straight day, while the FTSE 100 lagged due to weaker consumer and utility stocks. Geopolitical risks, including the escalation of Russia’s war in Ukraine, kept some investors cautious, but broader European markets benefited from optimism about US tech. We see a slightly improved risk sentiment which is also visible with less demand for bonds (which caused yields to rise).
► In the US, S&P 500 and Nasdaq 100 futures are modestly higher, signaling the currently positive momentum to remain for now. The focus is on Nvidia's earnings, which traders see as a pivotal moment for the broader market, especially in AI and tech-related sectors. Nvidia shares surged 4.9% in the previous session, with expectations of a fifth consecutive quarterly beat. Treasury yields rose slightly, with the 10-year yield up three basis points to 4.41%. The DXY rose 0.35%, rebounding after three consecutive losing sessions, supported by safe-haven demand and rising yields. Traders are also closely watching President-elect Donald Trump’s cabinet appointments, including candidates for Treasury Secretary, which could shape trade and fiscal policy.
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