SINGAPORE: Global equities rose modestly on Thursday, brushing aside pressure in technology shares after Nvidia’s latest results fell short of lofty investor expectations.
The MSCI World Equity Index gained 0.1% and Europe’s Stoxx 600 climbed 0.4%. Futures pointed to a steady open for the S&P 500 and Nasdaq composite.
Nvidia shares slipped 2.2% in US pre-market trade after the company’s data centre revenues of $41.1 billion missed analyst forecasts of $41.3 billion, raising concerns over demand from China despite a stronger revenue outlook for the next quarter.
“Granted it was minor, but a miss is odd for this company,” said Mark Matthews, head of research for Asia at Bank Julius Baer in Singapore.
European semiconductor stocks were mixed. ASML edged lower, while in Asia, Taiwan Semiconductor Manufacturing Co dropped 1.1%. Chinese rival SMIC rallied 9.5%.
In Europe, French politics remained in focus after Prime Minister Francois Bayrou announced plans to seek a confidence vote on his unpopular debt-reduction programme. France’s 10-year government bond yield eased slightly but stayed near its highest since March, while the CAC 40 index gained 1%.
Among corporate movers, Pernod Ricard jumped 7% after reporting a smaller-than-expected drop in annual sales and profit. Citi analysts warned that political risk could still weigh on French equities, with a potential downside of 5%.
The spread between French and German 10-year bond yields narrowed after hitting a seven-month high earlier this week.
The euro was steady at $1.1635, holding a three-week winning streak that has lifted monthly gains to 2%.
“French politics are dampening upside potential for the euro-dollar, but the bigger story is what happens with the Fed,” said Lee Hardman, senior FX analyst at MUFG.
Expectations of a US rate cut remain strong. Money markets now price an 88.7% chance of a 25-basis point cut at the Federal Reserve’s Sept. 17 meeting, up from 61.9% a month ago, CME’s FedWatch tool showed.
New York Fed President John Williams said risks were “more balanced” and future decisions would hinge on incoming data.
The two-year US Treasury yield held at 3.61%, near a four-month low.
In commodities, Brent crude slipped 0.5% to $67.67 a barrel. Spot gold was flat at $3,399.60 per ounce, on track for a weekly gain of nearly 1%. — Reuters
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