European stock markets are set to open advanced on Thursday, lifted by strong earnings from AI heavyweight Nvidia.
The U.K.’s FTSE 100 is anticipated to rise by around 0.62% at the open, according to IG Group. Germany’s DAX could gain 0.81%, while France’s CAC 40 is expected to climb 0.69%.
Nvidia revealed its third-quarter results after Tuesday’s closing bell, surpassing profit expectations and offering an upbeat deals outlook for the fourth quarter.
The chipmaker posted a 62% jump in profit to $57.01 billion year-over-year and expects $65 billion in profit for the coming quarter.
“There’s been a lot of talk about an AI bubble,” Nvidia CEO Jensen Huang told investors on an earnings call. “From our vantage point, we see something very different.”
FTSE 100 and Global Markets React to Nvidia’s Strong Performance
In Asia, chip stocks were up in early trading on Thursday, with Samsung Electronics and Hon Hai Precision Industry (Foxconn) pushing regional indices higher. U.S. stock futures also rose on Wednesday evening, reflecting the positive sentiment from Nvidia’s results.
Investor Confidence Boosted by AI Earnings
Ben Barringer, global head of technology research and investment strategist at Quilter Cheviot, told CNBC’s Europe Early Edition that Nvidia’s report reassured the market in two ways:
- They beat gross margins, which is crucial for semiconductor stocks.
- They directly addressed concerns about AI demand and the market outlook.
Barringer added, “They really went through and sort of tried to disprove pretty much all of the bear cases out there. They talked about scaling laws, model demand from companies like OpenAI and Anthropic, software demand, enterprise demand, and sovereign AI.”
Key Events and Data to Watch in Europe
Elsewhere, investors are keeping an eye on defence-linked shares after Europe’s Aerospace and Defense Index hit a two-month low on Wednesday, ending around 1.9% lower. This follows a visit by senior U.S. Pentagon officials to Ukraine to discuss a peace plan.
With earnings season winding down, it’s a quieter day for European markets. Walmart is anticipated to post results before U.S. requests open, while Eurostat will release GDP and employment breakdowns by industry for 2024.
UK Inflation Eases Ahead of Autumn Budget
In the U.K., affectation fell to 3.6% in October, raising prospects for a possible Bank of England rate cut in December. Sterling remained largely steady against the U.S. dollar overnight.
