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Stocks Lack Direction Ahead of Nvidia Earnings: Markets Wrap

(Bloomberg) -- Stocks in Asia fell while futures pointed to a muted open in Europe as traders were in wait mode before Nvidia Corp.’s results. Most Read from BloombergParis to Replace Parking Spaces With TreesNew York’s Transit Agency Approves $9 Congestion TollTrump Promises Could Have Seismic Impact on Washington EconomyNY Congestion Pricing Survived a Pause. Here’s What Could Kill ItIn Cleveland, a Forgotten Streetcar Bridge Gets a Long-Awaited LiftThe MSCI Asia Pacific Index dipped 0.5%, par Read More...

(Bloomberg) — Stocks futures pointed to gains in Europe and the US as traders awaited Nvidia Corp.’s results for fresh momentum.

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Contracts for the Euro Stoxx 50 were up 0.7%, with eyes also on UK inflation data. US futures eked out gains after Wall Street benchmarks overcame an escalation in Russia’s war against Ukraine to close higher on Tuesday. MSCI’s Asia benchmark slid 0.5%.

Investors are looking to Nvidia to see if the world’s most valuable company can continue its remarkable run fueled by spending on artificial intelligence hardware. The chipmaker rose 4.9% on Tuesday. Trading in options signals the results will be the most important catalyst left this year — more than the Federal Reserve’s December meeting, according to Barclays Plc strategists.

“Expectations are high, and the market will go into Nvidia’s earnings announcement positioned long, looking for a fifth consecutive quarterly earnings beat,” said Tony Sycamore, a market analyst at IG Australia. “Given Nvidia’s significant impact, its performance will undoubtedly drive sentiment in the tech sector and the broader market into year-end.”

Bloomberg’s dollar gauge advanced less than 0.1% following a three-day drop. The 10-year US Treasury yield climbed one basis point after falling two basis points in the previous session.

In corporate news, Tokyo Gas Co. shares jumped more than 10% after Elliott Investment Management said it now held a major stake in the company. Convenience store operator Seven & i advanced on a report that the founding family is looking to complete a deal to take the company private by the end of its fiscal year in February.

Elsewhere in Asia, Chinese banks kept their benchmark lending rates unchanged, in line with expectations. Indonesia’s central bank is expected to keep interest rates on hold later in the day.

In the US session, the S&P 500 added 0.4%. The Nasdaq 100 climbed 0.7%. A gauge of the “Magnificent Seven” megacaps advanced 1.7%.

President-elect Donald Trump announced he was tapping Cantor Fitzgerald LP Chief Executive Officer Howard Lutnick to lead the Commerce Department, a key role in facilitating Trump’s tariff and trade policies.

Meanwhile, Bitcoin set another all-time high, supported by a series of developments highlighting the deepening embrace of the digital-asset industry in the US under crypto cheerleader Trump. Oil was steady as an industry report signaled a build in US crude inventories ahead of official government figures.

Key events this week:

  • Nvidia earnings, Wednesday

  • Fed’s Lisa Cook and Michelle Bowman speak, Wednesday

  • Eurozone consumer confidence, Thursday

  • US existing home sales, initial jobless claims, Philadelphia Fed factory index, Thursday

  • Eurozone HCOB Manufacturing & Services PMI, Friday

  • US University of Michigan consumer sentiment, S&P Global Manufacturing & Services PMI, Friday

Some of the main moves in markets:

Stocks

  • S&P 500 futures rose 0.2% as of 6:50 a.m. London time

  • S&P/ASX 200 futures fell 0.4%

  • Hong Kong’s Hang Seng rose 0.2%

  • The Shanghai Composite rose 0.6%

  • Euro Stoxx 50 futures rose 0.6%

Currencies

  • The Bloomberg Dollar Spot Index was little changed

  • The euro was little changed at $1.0588

  • The Japanese yen fell 0.5% to 155.44 per dollar

  • The offshore yuan was little changed at 7.2426 per dollar

  • The Australian dollar was little changed at $0.6528

  • The British pound was little changed at $1.2687

Cryptocurrencies

  • Bitcoin rose 0.2% to $92,521.35

  • Ether rose 0.4% to $3,109.36

Bonds

Commodities

This story was produced with the assistance of Bloomberg Automation.

(Earlier version was corrected to say it’s fiscal year for Seven & i deal.)

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