Market Report.
🌟 Tonight, Nvidia is forecasted to report a slowing 82.8% revenue growth in Q3, with growth expected to slow further to 67.6% in Q4. The company’s stock price will be influenced by its ability to ramp up Blackwell production and overcome supply chain issues, while its gross margins are expected to decline due to geopolitical tensions and overheating Blackwell processors.
🎬 We have made a special report on the company’s results, which you can find on the official ATFX Youtube channel.
🗳️ Trump may name his Treasury Secretary nominee today, but he has not yet done so.
💷 UK inflation comes in above expectations. October’s inflation rate rises to 2.3% vs. 2.2% expected 1.7% in the previous period. the annualised inflation rate now stands at 3.3% vs. 3.1% estimated. however, PPI producer prices have come in softer than expected at 0.1% vs. 0.5% expected but regaining traction vs. – 0.5% in the previous period. the key question now is whether the Bank of England will continue to maintain a gradual approach to rate cutting following chancellor Rachel Reeves’ spending budget.
🏦 The governor of Italy’s central bank urged the European Central Bank to lower interest rates sufficiently to stimulate slowing economic development. “Restrictive monetary conditions are no longer necessary,” stated Fabio Panetta, a member of the ECB’s Governing Council. Right now, the ECB is considering how soon to reduce borrowing costs.
🇩🇪 The Social Democrats (SPD) has denied an emergency meeting to discuss Olaf Scholz’s candidacy as chancellor, stating that he will be the party’s nominee in the next German election. Scholz’s poor approval ratings have led to speculation that his second term could be derailed. Former SPD leader Sigmar Gabriel has openly questioned his candidacy, and there is growing resistance against Scholz at the party’s base. The SPD currently polls in third place nationally, behind the Christian Democrats and the far-right Alternative for Germany.
🌾 Poland, France, and Italy are forming a “veto minority” within the European Union to block a trade deal between the EU and the Mercosur bloc (Brazil, Argentina, Uruguay, Paraguay), which they view as unfavorable for their domestic agricultural industries. Poland, known for protecting its farmers from foreign competition, has organized protests against the deal. French farmers and meat/poultry producers demand guarantees that Mercosur producers comply with EU health and environmental standards, including antibiotics and pesticides. This move reflects ongoing tensions between agricultural protectionism and the EU’s broader trade liberalization agenda.
📈 Market View:
📅 European futures open in positive territory. The DAX 40 is at 19,195 points after yesterday’s sharp fall in the session, where it lost 19,000 points with a low of 18,870 points, down from the previous low reached last week. The Eurostoxx is also recovering from this fall, currently trading at 4,785 points; during yesterday’s session it suffered a pullback to 4,700 points, also below last week’s low.
🇺🇸 US futures seem to be trading optimistically. Prices of the Mini S&P 500 are approaching the 6,000 point resistance and are currently trading at 5,952 points. Likewise, the Nasdaq 100 is heading towards 21,000 points, currently trading at 20,820 points.
💹 The dollar index has lost 106.50 but is holding at 106.30 points. The EUR/USD has rebounded, approaching the 1.06 area, currently trading at 1.0585.
🛢️ Crude oil remains at similar levels to those described yesterday, with Brent crude oil trading at $73.40 per barrel. Trump’s “frack, frack, frack” promise may face difficulties in the years to come as the rise of US shale oil output is predicted to drop significantly.
🪙 Gold has risen to $2,630 an ounce, reaching a high of $2,645 yesterday, attributed by some to rising geopolitical tensions as Ukraine is using long-range US weaponry to attack Russian territory, which could cross the red lines set by Putin to consider an open global conflict between Russia and NATO.
💰 Bitcoin hit $94,000, breaking a new all-time high. It is currently hovering near $93,000, trading at $92,775.
🌍 Geopolitics:
⚠️ Biden’s promise of a calm transition to Trump has been contradicted by his officials, with the US authorizing the use of missiles and systems to attack Russia, escalating the conflict towards World War III. Russia has confirmed its willingness to use nuclear weapons in case of territorial threats. The first attacks on facilities on Russian territory took place yesterday, according to the Russian defence ministry. Paradoxically, some media claims that Russia is escalating the conflict.
🚢 The damage to two undersea data cables in the Baltic Sea is being investigated as a potential act of sabotage, with Germany’s Defense Minister Boris Pistorius pointing to Russia as posing a hybrid and military threat. Pistorius stated that “nobody believes these cables were cut by accident” and that it must be assumed this was a “hybrid action” and “sabotage”, even without knowing the perpetrator. The incidents are similar to previous cases in the Baltic Sea, including the rupturing of a gas pipeline, which Russia has denied involvement in.
🔍 Once again, let us remember that one of the biggest acts of sabotage in history, with the blowing up of the Nord Stream II pipeline, was carried out some time ago against Russian and German installations, without the culprit having been found. Seymour Hersh, a Pulitzer Prize-winning investigative journalist, investigated and published a report alleging US involvement in the Nord Stream pipeline sabotage.
