
Markets Update: Global equities near historic highs as investors await Nvidia earnings, British pound holds steady, lagging behind US interest rate adjustments ✨ Recent market turbulence eases as policymakers address inflation STOXX index rises on tech stock performance.🌾 Soybean, corn, wheat, coffee, and cocoa prices fluctuate.
Economic Calendar
Global Markets Roundup: 28 August 2024
Global equities remained near their historical peaks on Wednesday as investors eagerly anticipated the earnings report from chipmaker Nvidia. The British pound also held steady close to a 2-1/2-year high, reflecting expectations that the UK's interest rate adjustments would lag behind those of the US. The MSCI global stock index EURONEXT:IACWI inched up by 0.05%, approaching a previous record set earlier in the month. The recent market turbulence observed in early August appeared to be calming down as policymakers took steps to address the substantial increase in inflation, the most notable in four decades.
In Europe, the STOXX index SXXP rose by 0.25% to reach a one-month high, driven by the performance of tech stocks in anticipation of positive news from Nvidia's earnings update. Nvidia's market value has significantly increased due to its leadership in AI computing hardware, with its stock price surging by approximately 3000% since 2019. With a market capitalization of $3.2 trillion, fluctuations in Nvidia's share price have a broad impact on the market. The company is expected to report a doubling of second-quarter revenue, although this may fall short of market projections. Traders are preparing for a potential 10% swing in market value, equivalent to $300 billion, making it possibly the most significant earnings movement by any company in history.
The performance of Nvidia, often hailed as the "most important company in the world," is poised to influence the direction of Wall Street and potentially drive markets to new record highs, as noted by analyst Kyle Rodda from Capital.com. S&P 500 SPX futures ES1! remained stable in early European trading, while Nasdaq 100 futures NQ1! dipped by 0.01%. On the other hand, Australian gambling firm Tabcorp (TAH.AH) experienced a notable decline in its shares, dropping by 17% to a four-year low after signaling missed earnings targets due to compliance and other expenses.
During the Asian session, debt and currency markets remained steady, with the Australian dollar AUDUSD briefly touching its highest level since January at $0.6813 following slightly better-than-expected monthly inflation data. The anticipation of US interest rate cuts has led to a weakening of the dollar on a global scale, resulting in strength in other currencies as markets brace for a reduction in US short-term rates, currently above 5.25%. Interest rate futures are pricing in 100 basis points of US rate cuts this year, with Fed Chair Jerome Powell endorsing the initiation of cuts last week, remarking that "the time has come." This stands in contrast to the cautious stance of the Bank of England, propelling the British pound GBPUSD to become the best-performing G10 currency with a 4.1% gain year-to-date. The pound reached a more than two-year high on Tuesday at $1.3269 before easing to $1.3232 in European trading.
Rates markets remained stable, with 10-year US Treasury yields US10Y at 3.82%, two-year yields (US2YT=RR) at 3.87%, and the spread between the two at its narrowest in nearly three weeks. Bitcoin BTCUSD dipped by 4% against the dollar to $59,223, while gold GOLD held steady at $2,507 per ounce. Oil prices retreated from recent gains as worries over Chinese demand resurfaced, with Brent crude futures BRN1! trading at $78.59 per barrel. The soybean contract with the highest activity on the Chicago Board of Trade (CBOT) ZS1! dropped by 0.4% to $9.82-1/2 per bushel at 0714 GMT, after reaching its peak since August 12 at $9.92 per bushel on Tuesday. Corn ZC1! declined by 0.3% to $3.91-1/2 per bushel, while wheat ZW1! decreased by 0.2% to $5.34-1/4 per bushel. The robusta coffee RC2 settled higher by $131, or 2.8%, reaching $4,846 per metric ton, with a peak at $4,952, the highest level seen since January 2008. The price of London cocoa C2! dropped by 2.8% to reach 5,314 pounds per ton.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team