Stocks ease as investors await Nvidia reality check, Fed minutes
By Amanda Cooper
LONDON (Reuters) — Global shares eased on Wednesday ahead of earnings from Nvidia (NASDAQ:NVDA), which many are hoping will help justify the hype around 2024's AI-driven rally, and ahead of minutes of the Federal Reserve's January meeting.
In commodities, steps by Chinese authorities to prop up economic growth in the world's largest raw materials consumer has raised fresh concerns about the growth outlook, which weighed on crude oil and iron ore.
Stocks in Europe traded down on the day, as shares in HSBC fell 5% after the region's largest bank reported a record annual profit that missed analyst expectations.
The STOXX 600 was down 0.3%, but within a whisker of record highs. The MSCI All-World index fell 0.1% on the day.
The key event of the day will be Nvidia earnings released after the US market close. Nvidia's earnings release and outlook are key for equity sentiment in the weeks to come as AI related stocks have been a strong driver of returns.
Atlanta Fed President Raphael Bostic speaks later on, as does Bank of England rate-setter Swati Dhingra.
«An important highlight will be Nvidia's earnings after the US close. Otherwise from central banks, we'll get the FOMC's minutes from the January meeting, and hear from the Fed's Bostic and the BoE's Dhingra,» Deutsche Bank strategist Jim Reid said.
Nvidia shares traded 1.6% lower in the premarket on Wednesday. Nasdaq futures fell 0.4%, while futures on the S&P 500 eased 0.24%.
Meanwhile, Chinese blue-chip stocks posted a 1.8% gain on the day, a day after the biggest ever reduction in the nation's benchmark mortgage rate as authorities stepped up efforts to prop up the struggling property market.
«Regulators are cautious and taking a gradual approach,
Read more on investing.com
