European Stocks, US Futures Rise On Nvidia Breakthrough Ahead Of CPI: Markets Wrap
European stocks edged up 0.2%, led by gains in the technology sector. Futures for the Nasdaq 100 rose 0.5% while those for the S&P 500 climbed 0.3% Asian equities were also higher.
Stocks advanced after Nvidia Corp. secured US assurances to resume sales of some artificial intelligence chips to China, lifting sentiment on a busy day that will also feature inflation data and big bank earnings.
European stocks edged up 0.2%, led by gains in the technology sector. Futures for the Nasdaq 100 rose 0.5% while those for the S&P 500 climbed 0.3% Asian equities were also higher. Bitcoin fell as traders took profit after a record-setting surge. US Treasuries nudged higher while the dollar fell.
The approval of export licenses for the H20 chip not only boosts Nvidia’s earnings prospects but also bodes well for progress in trade talks between the White House and key partners.
With stocks trading near record highs, investors will gain a clearer read on corporate health as JPMorgan Chase & Co. and other major banks report earnings, alongside the release of consumer price data.
“The US policy reversal on selling AI chips to China clearly constitutes good news for the industry,” said David Kruk, head of trading at La Financiere de L’Echiquier. “Other than that, the upward trend is still being fueled by investors riding the TACO trade — there are threats but they have yet to materialize.”
After months of seeing little inflation, the CPI probably experienced slightly faster growth in June as companies started to pass along higher costs of imported merchandise associated with tariffs.
The options market is betting the S&P 500 will swing 0.6% in either direction after Tuesday’s CPI, based on the cost of at-the-money puts and calls, according to Citigroup Inc. That would be in-line with implied moves the past two months, though below an average realized swing of 0.9% over the last year.
Corporate Highlights:
The European Union has finalized a second list of countermeasures to target US goods worth €72 billion ($84 billion), including Boeing Co. aircraft, automobiles and bourbon if it decides to retaliate against Donald Trump’s tariff policy.
Thames Water raised doubts over the likelihood of a successful overhaul of its finances, saying temporary nationalization may be in the cards.
Rio Tinto Group has named its iron ore boss Simon Trott as its new chief executive officer, replacing the outgoing Jakob Stausholm.
Ericsson AB’s profit beat analysts’ expectations after US sales growth boosted the market for 5G telecom equipment in the second quarter.
Some of the main moves in markets:
Stocks
The Stoxx Europe 600 rose 0.2% as of 8:37 a.m. London time
S&P 500 futures rose 0.3%
Nasdaq 100 futures rose 0.5%
Futures on the Dow Jones Industrial Average were little changed
The MSCI Asia Pacific Index rose 0.7%
The MSCI Emerging Markets Index rose 1%
Currencies
The Bloomberg Dollar Spot Index fell 0.1%
The euro rose 0.2% to $1.1689
The Japanese yen was little changed at 147.74 per dollar
The offshore yuan was little changed at 7.1765 per dollar
The British pound rose 0.1% to $1.3446
Cryptocurrencies
Bitcoin fell 2.8% to $116,819.83
Ether fell 0.7% to $2,984.75
Bonds
The yield on 10-year Treasuries declined one basis point to 4.42%
Germany’s 10-year yield declined two basis points to 2.71%
Britain’s 10-year yield declined one basis point to 4.59%
Commodities
Brent crude fell 0.7% to $68.71 a barrel
Spot gold rose 0.6% to $3,363.15 an ounce
