21st Nov 2024 06:53
(Alliance News) - Stocks in London are set to open higher on Thursday, shaking off declines in Asia, and a fall in Nvidia shares despite the chipmaker delivering an earnings beat.
IG says futures indicate the FTSE 100 to open 33.5 points higher, 0.4%, at 8,118.57 on Thursday. The index of London large-caps ended down 13.95 points, 0.2%, at 8,085.07 on Wednesday.
The pound was quoted at USD1.2647 early Thursday in London, rising from USD1.2634 at the time of the European equities close on Wednesday. The euro stood at USD1.0543, up from USD1.0515. Against the yen, the dollar was trading at JPY154.72, fading from JPY155.36.
"Anyone who thought that the significant downward surprise in September's UK inflation figures would be repeated seamlessly in October was disappointed yesterday," Commerzbank analyst Michael Pfister commented.
"As for the Bank of England's upcoming meeting in December, the figures suggest that a pause is now almost a foregone conclusion. Even the rate cut in February is being called into question. We still believe that the next rate cut will take place then. The argument in favour of this is that monetary policy is still likely to be seen as quite restrictive and policymakers will certainly want to avoid falling behind the curve. However, if the upcoming inflation figures also surprise on the upside, the discussions are likely to intensify."
The global economic calendar has UK public sector borrowing data at 0700 GMT, US weekly jobless claims numbers at 1330 GMT and a flash eurozone consumer confidence reading at 1500 GMT.
In New York, the Dow Jones Industrial Average ended up 0.3% on Wednesday. The S&P 500 closed marginally higher, while the Nasdaq Composite lost 0.1%.
Nvidia fell 2.5% in after hours dealings in New York. It said production of its new super chip, Blackwell, was in "full steam," predicting higher fourth quarter sales than previously forecast.
The comments came on a call following the release of third quarter results.
Net income more than doubled to USD19.31 billion in the quarter ending October 27 up from USD9.24 billion a year prior. Non-GAAP diluted earnings per share leapt to USD0.81 from USD0.40.
Revenue jumped 94% to USD35.08 billion from USD18.12 billion. Non-GAAP operating margin was unchanged at 75.0%.
Analysts had expected Nvidia to report revenue of USD32.95 billion, non-GAAP EPS of USD0.74 and non-GAAP gross margin of 74.9%.
As Blackwell ramps, however, the firm expects gross margins to moderate to the low-70s. When fully ramped, we expect Blackwell margins to be in the mid 70s.
In China on Thursday, the Shanghai Composite was down 0.1% in late trade. The Hang Seng in Hong Kong fell 0.3%. In Tokyo, the Nikkei 225 lost 0.9, while the S&P/ASX 200 in Sydney fell marginally.
Brent oil was quoted at USD73.11 a barrel early Thursday, down slightly from USD73.20 at the time of the London equities close on Wednesday. Gold rose to USD2,660.71 an ounce from USD2,648.58.
The local corporate calendar sees a trading statement from sports retailer JD Sports Fashion and half-year results from safety equipment manufacturer Halma.
By Eric Cunha, Alliance News news editor
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