Market Report.
📉 Nvidia’s revenue growth forecast for Q4 slowed to 69.5% from 94% in Q3, reflecting supply chain constraints, particularly at manufacturing partner TSMC, impacting chip production. However, Nvidia’s data center sales still grew 112% year-over-year, driven by strong demand for its AI chips. Nvidia CEO Jensen Huang denied reports of overheating issues with the liquid-cooled servers using the Blackwell chips, saying the engineering challenges are being addressed.
🔍 Given that these results were presented at the US market close, we will have to see the real impact they have on the company during today’s US trading session.
🏦 ECB policymaker Francois Villeroy de Galhau has urged the European Central Bank (ECB) to keep its options open amid potential tariff hikes under the Trump administration. Villeroy said that the balance of risks on growth and inflation is shifting to the downside, and possible tariffs are not expected to significantly alter the inflation outlook in Europe. He also urged the ECB to continue reducing monetary tightness through interest rate cuts and maintain full optionality for upcoming meetings.
🌍 According to Bloomberg, the US, the EU, and other nations are working on a plan to stop funding foreign oil and gas projects with tens of billions of euros. They hope to reach an agreement at an OECD meeting by Thursday. The campaign is an attempt to lock in a climate policy that is difficult to change and represents a U.S. 180-degree pivot only weeks before Trump takes office.
🚗 New car sales in Europe were flat in October, after falling for two consecutive months, according to industry data. However, the transition to fully electric or hybrid models gained ground. Total sales in Spain and Germany increased by 7.2% and 6% respectively, despite contractions in France, Italy, and Britain. European automakers are struggling with weak demand, high production costs, and managing the shift to electric vehicles while fending off competition from China. The number of new vehicles registered in the EU, Britain, and the European Free Trade Association rose 0.1% year-on-year to 1.04 million.
🔄 Villeroy of the ECB stated that the rate cutting policy would remain unchanged, with monetary policy being less restrictive and the pace determined by agile pragmatism. He also noted that potential US tariffs won’t significantly impact European inflation outlook.
💹 The dollar has risen since Donald Trump’s election, with the index hovering near a one-year high. However, Bitcoin has seen a 40% increase in the two weeks since the election, with investors expecting Trump’s administration to set friendlier regulations for the crypto sector. The biggest cryptocurrency reached a record high of $97,798 in Asian hours.
Market View:
📉 NVIDIA saw some volatility yesterday, with lows as low as $137.92 per share and highs as high as $145.92 per share. The technology sector and the company itself are expected to reflect last night’s results in today’s trading session.
📊 The S&P 500 has yet to reach 6000 points and is currently trading at 5927 points. The Nasdaq 100 remains below 21,000, currently trading at 20,688 points.
💵 The dollar index shows strength again and rises above 106.50 points. The EUR/USD loses 1.06 again and is currently trading below 1.0550.
🏛 The European market tries to recover once again this week. Trading timidly in positive territory, the DAX 40 is once again trying to recover yesterday’s falls; it is currently trading at 19,150 points. The Eurostoxx 50 loses 4800 points and is currently trading at 4762 points.
🛢 Oil is trading at similar levels to yesterday, with Brent crude at $73.30 a barrel. Gold breaks through the $2650 an ounce barrier, possibly driven by increased geopolitical risk in the face of NATO weapon strikes against Russia.
🪙 Bitcoin continues its unstoppable advance and is currently at a record high of $97,250.
Geopolitics:
🚀 Ukraine has launched a series of attacks using British-supplied Storm Shadow cruise missiles into Russia, targeting the Kursk region near the Ukrainian border. This follows Ukraine’s use of U.S.-provided ATACMS missiles to strike a Russian arsenal, violating Russia’s final red line. The U.S. has temporarily closed its embassy in Kyiv due to the threat of an air attack.
🤔 Let us remember the words of the NATO Secretary General, Stoltenberg, in September when he was asked about these Moscow red lines, stating that they do not believe in Putin’s red lines, because they have violated many of them and nothing has happened (are we playing Russian roulette?).
🚫 Turkish President Erdogan says Turkey does not support US President Biden’s decision to allow Ukraine to strike inside Russia.
🇺🇸 President-elect Donald Trump has chosen Matthew Whitaker as the US Ambassador to NATO, a former loyal aide from his first administration. Trump praised Whitaker’s strength, integrity, and dedication, and expressed his hope to promote peace through strength, freedom, and prosperity. Whitaker’s selection reflects Trump’s distrust of NATO and his intention to take a confrontational approach towards America’s traditional European allies.
⚓ The Danish Navy has arrested the Chinese cargo ship Yi Peng 3, suspected of being responsible for damaging submarine cables in the Baltic Sea. The arrest took place in Danish territorial waters in the Danish Strait.
