A look at the day ahead at Ankur Banerjee’s European and global markets
The prospect of slowing revenue growth at AI giant Nvidia and simmering concerns about geopolitical tensions are keeping investors wary, but bitcoin continues to march undaunted toward $100,000 on bets that Trump 2.0 will be crypto-friendly.
Futures indicate European stock markets are set for a subdued open as investors digest Nvidia’s projection of the slowest revenue growth in seven quarters. For investors accustomed to the AI ​​darling exceeding expectations, the numbers were disappointing.
The forecast will likely weigh on suppliers and the broader markets, given Nvidia’s place at the center of all things AI, which has driven most of the market gains in recent months.
With few economic data expected during the European session, the region’s technology stocks, which had already fallen to their lowest levels in three and a half months this week, are likely to put heavy pressure on markets on Thursday.
Indian conglomerate Adani Group was in the spotlight after chairman Gautam Adani was indicted in New York for his suspected role in a $265 million bribery scheme, US prosecutors said.
The fallout for the Adani empire, which was rocked by a short-seller attack in February 2023, was immediate, with shares in the conglomerate’s listed companies plunging between 10% and 20%. Dollar bonds also fell.
In currency markets, the dollar continued to lead the way, with the dollar index hovering close to a one-year high last week.[FRX/]
The dollar has been rising since Donald Trump’s decisive victory early this month as investors expect his proposed tariffs are likely to be inflationary, keeping US yields higher for longer.
The talk of the town, however, remains bitcoin, which has risen about 40% in the two weeks since the election, as investors expect the Trump administration to enact friendlier rules for the crypto sector.
The largest cryptocurrency hit an all-time high of $97,798 in Asian hours, with $100,000 not far away.
Key developments that could impact the markets on Thursday:
Economic Events: Business Environment in France for November; Eurozone consumer confidence flashes in November
(By Ankur Banerjee in Singapore; editing by Edmund Klamann)
