Nvidia Earnings Anticipation Spurs Market Buzz Amid Bitcoin Surge

Nvidia's highly anticipated Q3 earnings report has markets on edge, with options trading signaling a potential $300 billion swing in market value. Bitcoin surged past $94,000 amid expectations of crypto-friendly policies under US President-elect Donald Trump. In Europe, all eyes are on British inflation data, with core CPI expected to rise and potentially challenge the Bank of England's easing path.

Equities

The FTSE 100 ended 0.11% lower on Tuesday, reflecting a cautious mood ahead of inflation data and ongoing geopolitical tensions. Among individual stocks, Burberry dropped 4.7%, leading declines in the personal goods sector after a weak session. Mulberry shares fell 11% as the luxury retailer reported a wider first-half loss, citing plans to streamline operations under its new CEO. On a brighter note, Imperial Brands gained 3% following forecast-beating operating profits and optimistic guidance for next year. Vesuvius rose 9.3% on the FTSE 250 after announcing a £50 million share buyback. The FTSE 250 closed 0.17% higher, supported by gains in utilities.

In the US, the Nasdaq rose 1.04%, driven by technology stocks, while the S&P 500 gained 0.4%. The Dow Jones Industrial Average fell 0.28%. Nvidia shares surged 4.9% to $147.01, ahead of its earnings report, which has heightened expectations for the company due to its role in the AI-driven rally. Walmart climbed 3% to a record closing high of $86.60 after raising its annual sales and profit forecasts for the third consecutive time, with management highlighting strong demand in higher-margin categories.

Super Micro Computer saw a significant jump of 31.2% after appointing BDO USA as its auditor and submitting a compliance plan to Nasdaq to avoid delisting. Netflix gained 2.9%, hitting a record high as 108 million viewers tuned in to a boxing match hosted on its platform. Goldman Sachs issued a forecast that the S&P 500 could reach 6,500 by the end of 2025, adding optimism to the market.

Investors are also monitoring President-elect Donald Trump’s appointments, including Mehmet Oz for the Centers for Medicare and Medicaid Services and Howard Lutnick for commerce secretary, as they evaluate the potential impact on sectors like healthcare and trade. Volume on US exchanges reached 13.94 billion shares, slightly below the recent daily average of 14.24 billion.

Forex & Commodities

The US dollar index rose to 106.25, supported by reduced expectations for aggressive Federal Reserve rate cuts and geopolitical concerns following Russia's update to its nuclear doctrine. However, market sentiment calmed after remarks from Russian Foreign Minister Sergei Lavrov, who downplayed immediate nuclear risks. The euro weakened slightly to $1.0586, while sterling edged down to $1.2671. The yen held steady at 154.68 per dollar, despite a sharp rally earlier in the session, amid speculation about potential intervention by Japanese authorities to stabilise the currency.

Gold prices climbed for a third straight session, reaching a one-week high of $2,636.59 per ounce, bolstered by safe-haven demand linked to Russia-Ukraine tensions and a pause in the dollar’s rally. Meanwhile, traders anticipate updates from Federal Reserve officials on the trajectory of US interest rates, with markets pricing a 59% chance of a 25-basis-point cut in December.

Oil prices remained stable as Brent crude futures rose slightly to $73.42 per barrel, and US WTI crude held at $69.39. Concerns over supply disruptions from Russia due to escalating conflict in Ukraine counterbalanced a 4.75-million-barrel rise in US crude inventories reported by the American Petroleum Institute. However, signs of increased Chinese crude imports provided some support to prices, with data suggesting November imports may approach record highs.

Central bank comments also shaped sentiment. The ECB's Fabio Panetta urged further rate cuts to stimulate growth, while Kansas City Fed President Jeffrey Schmid highlighted ongoing uncertainty over how far US interest rates could fall.