A look at the day ahead at Vidya Ranganathan’s European and Global markets.
Tuesday’s main headlines are Wall Street’s record highs overnight and Nvidia’s (NASDAQ:) new attempt to dethrone Apple Inc (NASDAQ:) and become the world’s most valuable company.
The return of excitement around technology, artificial intelligence and corporate profits has set the tone in Asia, where Tokyo’s index is back above 40,000, and is likely to boost European stock markets as well.
Overnight, the stock rose to a record high, rising to 43,000 points for the first time, led by chip stocks after a 2.4% jump in AI darling Nvidia and a smooth start to the third quarter earnings season .
Nvidia’s shares closed at their highest levels ever on Monday, pushing its market value to $3.39 trillion – just below Apple’s $3.52 trillion and above Microsoft’s (NASDAQ:) $3.12 trillion.
More bank income will follow on Tuesday. Bank of America is expected to report a decline in third-quarter earnings, Goldman Sachs is expected to see higher fees for advisory and underwriting services, and Citigroup and brokerage firm Charles Schwab (NYSE:) also reports earnings.
Key for Europe from a series of jobs and inflation data releases is the European Central Bank’s survey of bank lending to the eurozone economy, which should help boost expectations for Thursday’s policy review. The ECB will implement another quarter-point interest rate cut on Thursday, a move that policymakers were reluctant to acknowledge and that traders had given less than a 25% chance of happening when the bank met a month ago.
Key developments that could impact the markets on Tuesday:
Income: Bank of America, Goldman Sachs, Charles Schwab, Citi
Economic data: UK jobs, French CPI, Eurozone industrial production, German ZEW economic sentiment, ECB bank lending survey
Government debt: Reopening of the 30-year UK government debt auction
(By Vidya Ranganathan; Editing by Edmund Klamann)
