Wednesday,20 November 2024 16:47:41

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Wednesday,20 November 2024 at 16:47

UK stocks traded slightly down as inflation surpassed the Bank of England target fuelling expectations the BoE will refrain from cutting rates next month. The CPI Index rose at an annual rate of 2.3% in October, up from 1.7% in September and above the 2.2% expected by economists. The increase was put down to higher electricity and gas prices.

European markets were also weaker as investors kept an eye on a spike in tensions in the Ukraine-Russia war.

U.S. stocks fell in early trade as investors scaled back risk appetite ahead of Nvidia’s latest quarterly earnings with geopolitical tensions with Russia rumbling on in the background. Geopolitical risk has dampened market sentiment in recent days after Vladimir Putin warned the U.S. that the threshold for the use of nuclear weapons had been lowered following Joe Biden’s decisions to allow Ukraine to use US weapons to strike inside Russia.

Gold prices continued their move higher as the initial reaction to Putin’s rhetoric sideswiped markets, with a move to haven assets such as Gold and Treasury Bonds.

Crude oil inched up on a backdrop of escalating tensions and signs of improving China demand.

The U.S. Dollar continued to strengthen with the U.S. Dollar Index which measures the greenback against a basket of currencies soaring to its highest level in a year. The prospect of the U.S. introducing a swathe of new tariffs under President elect Trump has led economists to say the Euro could return to parity with the U.S. Dollar in their 2025 outlooks.

On the corporate side the world’s largest company, Nvidia, was expected to report impressive quarterly sales when the markets close, with a projected 83% increase in third-quarter revenue from the previous year. The stock has so far rocketed 194% this year, having jumped 16% since its second-quarter earnings release.

The semiconductor giant’s latest results will be scrutinized to gauge if the world’s most valuable company can continue its remarkable run which has been fuelled by spending on artificial intelligence hardware. Analysts signalled the earnings release would likely be the most important catalyst left for the market this year – more than the Federal Reserve’s December meeting. Focus will be firmly on whether Nvidia will surpass earnings expectations and once again be able to raise guidance as it moves forward into the fourth quarter.

Markets

the close

FTSE 100 8,085 (-0.17%)

FTSE 250 20,244 (-0.90%)

DAX 19,0195 (-0.22%)

16:45 GMT

Dow Jones 43,188 (-0.18%)

S&P 500 5,879 (-0.64%)

NASDAQ 18,827 (-0.85%)

Fixed Income

UK 10-YR YIELD 4.469

Exchange Rates

GBP/USD 1.2634

GBP/EUR 1.2015

Commodities

Gold $2,649 +0.68%

Brent $73.08 +0.06%

Important - No news or research item should be construed as a recommendation to trade. The inclusion of securities within this report does not necessarily imply their suitability for individual portfolios or situations in respect of which further advice should be sought. Information contained in this report has been compiled from sources believed to be reliable but is not warranted to be accurate or complete.