Nvidia Earnings Loom as Yen Rises and Gold Gains

Nvidia’s influence on US markets remained in focus as its shares moved lower on Tuesday ahead of after-hours results, while the yen rose to ¥155.37 and sterling edged up to $1.315 early this morning. Spot gold strengthened to $4,089 per ounce as investors assessed higher US jobless claims and awaited Fed minutes, while Brent crude slipped to $64.67 after US industry data showed a rise in crude inventories. Analysts also noted ongoing pressure on oil from oversupply concerns despite sanctions tightening around Russian producers Rosneft and Lukoil.

Equities

The FTSE 100 fell 1.3% on Tuesday, marking a fourth straight daily decline as financial and mining stocks pulled the index lower. Banks were weak for a second session, with Barclays, HSBC and Standard Chartered falling between 2.2% and 3.4% by the close.

Industrial miners also slipped, with Anglo American down 2.6%, while Rio Tinto and Glencore dropped around 2% to 2.6% as copper prices eased for a third day. Ocado posted the sharpest move in the index’s wider universe, sliding 17.4% to its lowest level since 2013 after its US partner Kroger confirmed plans to shut three automated warehouses in January.

Imperial Brands rose 2.4% after reporting annual profit ahead of market forecasts. Intermediate Capital Group gained 4.5% after Amundi said it would purchase a 9.9% stake. Greencore added 6.3% after it reported full-year adjusted operating profit of £125.7 million, up from £97.5 million a year earlier.

In the US, the S&P 500 fell 0.8% on Tuesday, its fourth straight daily decline and its longest losing run in three months. Concerns about stretched valuations weighed on large technology names. The Dow Jones Industrial Average fell 1.1% and the Nasdaq Composite slipped 1.2%.

Home Depot dropped 6% after cutting its full-year profit forecast and missing quarterly earnings expectations earlier in the day. Amazon fell 4.4% by the close, adding to pressure on the megacap group. Nvidia was 2.8% lower ahead of its earnings report due after Wednesday’s closing bell, with investors focused on whether the company can maintain the momentum driven by demand for AI-linked hardware.

Forex & Commodities

The yen moved higher in Asian trading on Wednesday, recovering after touching a nine-month low the previous day, and was last at ¥155.37 to the dollar. The dollar index edged lower early this morning to 99.52 as Treasury bonds drew renewed demand. The euro was slightly higher at $1.159 and sterling was also firmer at $1.315.

Gold strengthened early this morning as risk-averse investors added to holdings. Spot gold rose to $4,089 per ounce, supported by broader caution ahead of minutes from the Federal Reserve’s recent meeting and the delayed US non-farm payrolls report, which is due on Thursday. Data released on Tuesday showed the number of Americans receiving unemployment benefits reached a two-month high in mid-October. Economists expect Thursday’s payrolls release to show 50,000 jobs added in September. Traders are now assigning an implied 49% probability of a quarter-point rate cut at the Federal Reserve’s December meeting.

Oil prices moved lower early this morning after an industry report signalled rising US crude inventories. Brent eased to $64.67 a barrel after climbing on Tuesday, while West Texas Intermediate slipped to $60.57. The American Petroleum Institute reported late on Tuesday that crude stocks rose by 4.45 million barrels in the week ending 14 November, with increases also recorded in gasoline and distillates. Price declines were limited by ongoing US sanctions on Russian producers Rosneft and Lukoil ahead of a 21 November deadline for companies to unwind dealings. Washington said this week that the restrictions are already curbing Russian export volumes, prompting refiners in China and India to seek alternative suppliers.