Uncle Banerjee looks ahead to European and global markets
Prospects for slowing sales growth at AI giant Nvidia (NASDAQ:) and lingering fears over geopolitical tensions keep investors on edge, but Bitcoin remains steadfast on bets that Trump 2.0 will be crypto-friendly It continues to rise towards $100,000.
European stock markets are expected to open subdued as investors digest Nvidia’s forecast for the weakest revenue growth in seven quarters, according to futures analysis. The numbers were disappointing for investors who were accustomed to the AI darling outperforming all expectations.
This forecast is likely to weigh on suppliers and the broader market, given Nvidia’s central position in the AI sector, which has driven most of the market gains in recent months.
With few economic data scheduled during the European session, the region’s tech stocks, which have already fallen to 3-1/2-month lows this week, are likely to weigh on the market on Thursday.
Indian conglomerate Adani Group was in the spotlight after its chairman, Gautam Adani, was indicted in New York on charges of involvement in a $265 million bribery scheme, according to U.S. prosecutors.
The impact on the Adani empire, which was rocked by a short-selling attack in February 2023, was immediate, with shares of the conglomerate’s listed companies falling between 10% and 20%. Dollar-denominated bonds also fell.
The dollar continues to dominate the currency market, hovering near its one-year high hit last week. (FRX/)
The dollar has trended higher since Donald Trump’s decisive victory earlier this month, as investors expect his tariff proposals are likely to lead to inflation and keep U.S. interest rates high for an extended period. be.
But the story remains Bitcoin, which has risen about 40% in the two weeks since the election as investors hope the Trump administration will institute more friendly regulations for the crypto sector.
The largest cryptocurrency hit a record high of $97,798 in Asian time, not far off $100,000.
Key developments that may impact the market on Thursday:
Economic events: French business environment in November. Eurozone Consumer Confidence Update for November
(Written by Ankur Banerjee in Singapore; Edited by Edmund Klamann)
