investingLive European session wrap: Gold stumbles, equities mixed as Nvidia drags US futures down
Headlines:
- Gold price faces a key test as $4,000 breaks and weekly support beckons
- Gold erases post-midterms gains as higher real yields and US dollar hurt. What's next?
- Chinese tech firms reportedly rushing to secure more Nvidia chip capacity amid fears that spy scandal would spur tighter restrictions
- Nvidia stock plunges 8.6%, but AMD and Broadcom rally. Which chip stocks are worth buying?
- Nasdaq futures are under pressure. Is it too late to short?
- Crude oil is caught between hopes of de-escalation and concerns of further escalation. What's next?
- Chart of the day: USD/JPY nears 160.00 as technical warning signs raise Japan intervention risks
- BOJ policymaker Asada urges caution on further rate hikes even as December move remains firmly in play
- AUD/USD faces a make-or-break test as dollar bulls turn up the heat
- UK September GDP beats expectations as resilient growth keeps BOE December rate hike on track
- UK Q3 GDP meets estimates as resilient growth gives BOE more room to tackle inflation
Markets:
- CHF leads, AUD lags on the day
- 10-year Treasury yields up 1.1 bps to 5.00%
- Gold down 1.1% to $3,940
- WTI crude oil down 0.8% to $85.84
- European stocks push higher; S&P 500 futures -0.4%
- Bitcoin down 1.9% to $72,872
There wasn't too much action in European morning trade today, as markets are looking fairly mixed and a little more on edge again.
The standout in terms of market moves is in the equities space, with European stocks advancing with the DAX hitting a fresh record high while US futures are stumbling as we head to the Wall Street open later. The latter owes to renewed weakness in tech shares, with Nvidia coming under pressure amid CEO Jensen Huang's alledged affairs. The chipmaker is down by well over 7% in pre-market trading currently, souring the mood among AI-related stocks.
Elsewhere, the dollar is continuing to hold steadier after a modest advance in the day before. EUR/USD is lightly changed but keeping below 1.1100 while USD/JPY briefly flirted with a push towards the 160.00 mark, with the high touching 159.94 before backing off to around 159.70 now.
This comes as the bond market continues to stay under pressure after the US inflation data earlier in the week. 2-year Treasury yields are seen at 4.76% today with 10-year yields still sticking at 5.00%.
In terms of data, we did have UK September monthly GDP and the preliminary estimates for Q3 GDP during the session. Both releases reaffirmed a more resilient growth picture in the UK, so that sort of vindicated market expectations for a BOE rate hike in December next. The central bank is very much caught in a battle against stubborn inflation, so the numbers today will allow them to focus more on that as the economy holds up at the end of the third quarter.
In the commodities space, oil prices are down slightly again with WTI crude retreating by 0.8% to $85.84. Meanwhile, gold prices are staying under pressure as the recovery above $4,000 earlier this week is looking rather short-lived as sellers are attempting to try for a stronger technical break to the downside as we get into the latter stages of the week.
Coming up, we do have US weekly jobless claims to work through in terms of key risk events on the economic calendar. But all else being equal, everyone will have their eyes on Nvidia and how tech shares hold up today. That will have a bigger say on the broader market mood and trading sentiment before we get to the final stretch this week.