Ankur Banerjee provides an update on the European and global markets for the day ahead.
The prospect of slowing sales growth from artificial intelligence giant Nvidia and lingering concerns over geopolitical tensions are keeping investors on edge, but bitcoin continues to advance, undeterred, toward the $100,000, betting that Trump 2.0 will be pro-cryptocurrency.
Futures indicate that European stock markets are expected to open mixed as investors digest Nvidia's forecast for its weakest revenue growth in seven quarters. For investors accustomed to AI darlings beating all estimates, the numbers were disappointing.
The forecast is expected to weigh on vendors and markets in general, given Nvidia's place at the center of all things artificial intelligence, which has driven most of the market's gains in recent months.
With little economic data expected during the European session, the region's technology stocks, which have already fallen to three-and-a-half month lows this week, will likely weigh on markets on Thursday.
Indian conglomerate Adani Group has been in the spotlight after its chairman Gautam Adani was indicted in New York for his alleged role in a $265 million bribery scheme, according to US prosecutors.
The fallout for the Adani empire, which was rocked by a short-seller attack in February 2023, was immediate, with shares of the conglomerate's listed companies falling 10-20%. Its dollar bonds also fell.
In the currency market, the dollar remained in the lead, with the dollar index nearing a one-year high reached last week[FRX/].
The dollar has been rising since Donald Trump's decisive victory earlier this month as investors expect his proposed tariffs to be inflationary, keeping U.S. rates higher for longer .
However, bitcoin remains the talk of the town, rising about 40% in the two weeks following the election as investors expect the Trump administration to implement regulations more favorable to the cryptocurrency sector.
The largest cryptocurrency hit a record high of $97,798 in Asian hours, and $100,000 is not far away.
Main developments that could influence the markets on Thursday:
Economic events: Business climate in France for the month of November; consumer confidence in the euro zone for the month of November.
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