Global Markets Face Uncertainty as Nvidia’s Earnings Disappoint
Lukewarm Open Expected in Asia
Investors were left underwhelmed by Nvidia’s highly anticipated earnings report, which failed to inject much-needed vigor into global markets. As a result, Asian markets are bracing for a lackluster opening on Thursday. Wall Street struggled to stay afloat on Wednesday, with bond yields and the dollar rising, while a weak 20-year U.S. Treasury bond auction highlighted the strain of Washington’s fiscal deficit on investors.
Global Economic Picture Remains Gloomy
The global economic outlook remains uncertain, with European stocks experiencing their worst run in over two months, China’s yuan slipping to a three-and-a-half-month low, and volatility on the rise. Despite Nvidia’s reported beat on third-quarter earnings per share and forecast fourth-quarter revenue slightly above estimates, shares fell in after-hours trading, casting a shadow over market sentiment.
Asia’s Economic Calendar: A Mixed Bag
Thursday’s economic calendar in Asia is relatively light, with key releases including South Korean export, Indonesian current account, and Hong Kong inflation data. Annual inflation in Hong Kong is expected to slow to 1.7% in October, marking the steepest decline since April and raising concerns about deflationary pressures spreading from the Chinese mainland.
Bank of Japan Governor Kazuo Ueda Takes Center Stage
Bank of Japan Governor Kazuo Ueda is scheduled to speak at a financial forum in Paris, and investors will be closely watching for any signals that may differ from his balanced remarks earlier this week. The yen’s recent behavior suggests that markets are more focused on the Fed’s hawkish outlook, but a notably hawkish signal from Ueda could potentially engineer a sustainable recovery.
Bitcoin Inches Closer to Historic Break
Meanwhile, Bitcoin is moving closer to a historic break above $100,000, driven by growing confidence that President Donald Trump’s administration will be crypto-friendly.
Key Developments to Watch on Thursday
- Bank of Japan Governor Kazuo Ueda speaks in Paris
- Hong Kong inflation (October)
- South Korea exports (October)
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