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Europe expected to rise slightly, Nvidia in its sights – 11/18/2024 at 08:44

Former Stock Exchange building

The main European stock markets are expected to show moderate progress at the opening on Monday, in the absence of immediate catalysts but before the publication this week of the quarterly results of Nvidia, heavyweight in the artificial intelligence sector.

Futures contracts suggest an opening increase of 0.18% for the CAC 40 in Paris, 0.04% for the FTSE in London, 0.32% for the in Frankfurt, and 0.19% for the EuroStoxx 50.

Investors are hanging on Nvidia's results due Wednesday.

The semiconductor manufacturer is the main barometer of the AI ​​sector, a theme which has contributed to the performance of the American markets and that of the group: over the last 12 months, Nvidia has grown by 187%.

The capitalization of the company, one of the “magnificent seven”, is now greater than the total capitalization of the Canadian, French, or British markets.

The impact of a surprise on the group's results will therefore have repercussions well beyond the American markets.

Investors are also digesting the latest comments from the Federal Reserve.

Fed Chairman Jerome Powell said Thursday that there was no need for the Fed to rush to cut its key rates, given economic growth, a strong job market and inflation above the 2% target.

In Japan, the Bank of Japan reiterated on Monday its intention to raise its rates if inflation and growth progressed in line with its projections, but did not give further indications.

A WALL STREET

The New York Stock Exchange ended down on Friday after the latest statements from Fed boss Jerome Powell which suggest that the central bank could lower its rates at a slower pace than expected, while the markets react to the appointments of the future Trump administration.

The Dow Jones index fell 0.70%, or 305.87 points, to 43,444.99 points.

The broader Standard & Poor's 500 lost 78.55 points, or 1.32% to 5,870.62 points.

The Nasdaq Composite fell 427.53 points, or 2.24% to 18,680.121 points.

Applied Materials fell 9.2% after announcing Thursday that it expects first-quarter revenue below Wall Street expectations, a sign of sluggish demand for non-AI chipmaking equipment. .

IN ASIA

The Tokyo Stock Exchange declined under pressure from technology stocks, which fell in the wake of the decline in the American sector. The Nikkei index lost 1.09% on Monday to 38,220.85 points. The broader Topix lost 0.73% to 2,691.76 points.

In terms of values, Tokyo Electron lost 1.6% and SoftBank Group 2.1%. The pharmaceutical sector posted the largest sectoral decline, 3.6%, following the appointment of anti-vaccine figure Robert F Kennedy Jr to lead the Trump administration's Health Department.

Chinese markets are hesitant, with rivalry with the United States weighing on market sentiment. The Hong Kong Hang Seng index increased by 0.78%, the Shanghai SSE Composite fell by 0.21%, the CSI 300 decreased by 0.46%.

RATE

US yields are stable as investors digest Jerome Powell's latest comments in the absence of new catalysts.

The yield on the German ten-year fell by 1.3 bp to 2.336%, that of the two-year rate was stable at 2.128%.

The yield on the ten-year Treasury remains at 4.4296%, while the yield on the two-year security remains at 4.2971%.

CHANGES

Foreign exchange markets are sluggish, with no leading indicators expected on Monday.

In Asia, the yen declined by 0.19% to 154.64 yen per dollar, the Australian dollar lost 0.02% to 0.646 dollars.

The dollar fell by 0.01% against a basket of reference currencies, the euro rose by 0.01% to $1.0542, and the pound sterling strengthened by 0.14% to $1.2635.

OIL

The lifting of restrictions that until now prevented Ukraine from using weapons supplied by the United States to strike deep into Russian territory supports the barrel.

Brent rose by 0.3% to $71.25 per barrel, American light crude (West Texas Intermediate, WTI) rose by 0.12% to $67.1.

(Written by Corentin Chappron, edited by Augustin Turpin)

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