20th Nov 2025 06:51
(Alliance News) - The FTSE 100 is set to open higher on Thursday, as the Nvidia earnings calmed tech sector nerves, helping to snap losing streaks for stocks in Tokyo and Sydney.
IG says futures indicate the FTSE 100 to open 52.6 points higher, 0.6%, at 9,560.01 on Thursday. The index of London large-caps closed down 44.89 points, 0.5%, at 9,507.41 on Wednesday. The FTSE 100 has declined for five trading days in a row.
Nvidia shares rose 5.1% after hours.
The Santa Clara, California-based chip maker reported blowout third quarter results and guidance.
Net income climbed 65% to USD31.91 billion In the three months to October 26 from USD19.31 billion a year ago. Revenue was USD57.01 billion, up 62% from USD35.08 billion.
Looking ahead, Nvidia forecast revenue of USD65 billion for the fourth quarter, plus or minus 2%.
Swissquote analyst commented: "What might have made a difference in the market's reaction is Huang saying that 'we've entered the virtuous cycle of AI. The AI ecosystem is scaling fast – with more new foundation model makers, more AI startups, across more industries and in more countries. AI is going everywhere, doing everything, all at once'."
"Translated into simpler terms: don't worry about circularity; just look at the horizon."
Before the earnings, the Dow Jones Industrial Average rose 0.1% in New York, the S&P 500 added 0.4% and the Nasdaq Composite climbed 0.6%.
In China, the Shanghai Composite was down 0.3% in late dealings, while the Hang Seng Index in Hong Kong was 0.5% lower. In Tokyo, however, the Nikkei 225 surged 2.6%, while Sydney's S&P/ASX 200 added 1.2%.
A four-day losing streak for the Nikkei has been snapped. It also represents the Sydney benchmark's first meaningful gain since November 10. On Monday, it had inched up by just under a couple of index points.
Sterling fell to USD1.3058 early Thursday, from USD1.3076 at the time of the London equities close on Wednesday. The euro faded to USD1.1517 from USD1.1536. Against the yen, the dollar fell to JPY157.69 from JPY156.67.
The yield on the 10-year US Treasury widened to 4.14% from 4.12%. The 30-year yield stretched to 4.75% from 4.74%.
Thursday's global economic calendar has the September US nonfarm payrolls data at 1330 GMT.
The Bureau of Labor Statistics said it has cancelled the October nonfarm payrolls reading.
"BLS will not publish an October 2025 employment situation news release. Establishment survey data from the current employment statistics survey for October 2025 will be published with the November 2025 data," it added.
Federal Reserve officials were at loggerheads during the October Federal Open Market Committee meeting with "many" suggesting it will be wise to leave interest rates unchanged for the rest of the year, minutes on Wednesday showed.
While the FOMC approved a quarter point rate cut at the October meeting, the minutes showed several officials were against lowering the target range, while some supported the decision but could have also backed the status quo.
In addition, the minutes showed participants expressed "strongly differing views" about what policy decision would most likely be appropriate at the December meeting.
While most officials judged further rate cuts will likely be appropriate as the FOMC moves to a more neutral policy stance over time, several indicated that they "did not necessarily view another 25 basis point reduction as likely to be appropriate" in December.
Several participants assessed that a further reduction could be appropriate in December if the economy evolved as they expected.
But "many" participants suggested that, under their economic outlooks, it would likely be appropriate to keep the target range unchanged for the rest of the year.
A barrel of Brent rose to USD63.63 early Thursday, from USD63.37 at the time of the London equities close on Wednesday. Gold declined to USD4,067.91 an ounce from USD4,081.23.
Thursday's UK corporate calendar has half-year results from safety products manufacturer Halma and speciality chemicals maker Johnson Matthey, plus a trading statement from retailer JD Sports.
By Eric Cunha, Alliance News news editor
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