Key drivers for the markets this week include Nvidia’s latest quarterly results, UK inflation data, and central bank speakers providing guidance on potential rate cuts. European stock futures are down, and the dollar index is weak ahead of these events.
Nvidia’s results are highly anticipated, with the market rallying in anticipation of its earnings report. Expectations are high for Nvidia’s performance, as its stock price increased by over 2.5% on Monday. While Nvidia’s results may influence the AI stock market and US stocks, the market has shown resilience in recent weeks. Even if Nvidia’s results disappoint slightly, the market is expected to recover.
Commodity prices have been rising, sparking inflation concerns and potentially impacting rate cut decisions. Prices of various commodities, including copper and gold, continue to increase. Inflation remains a threat, and gold serves as a hedge against rising prices.
The Reserve Bank of Australia’s (RBA) stance on inflation and potential rate adjustments could influence other central banks. The RBA has indicated a commitment to price stability and suggested further cuts may be necessary. The RBA’s warnings about price pressures could signal future inflation risks for global central banks.
Central bank speeches, including those by ECB President Lagarde and Federal Reserve members, are under scrutiny. Rate cut expectations are high for the ECB, BOE, and the Fed. Additionally, JP Morgan’s succession plans for CEO Jamie Dimon are being closely monitored, with potential short-term impacts on the stock price due to uncertainty surrounding leadership changes.
Overall, the market is reacting to key events such as Nvidia’s results, rising commodity prices, central bank speeches, and succession plans at major companies. Inflation concerns, rate cut expectations, and leadership transitions are key factors driving market sentiment this week.
Article Source
https://www.fxstreet.com/analysis/nvidia-results-and-central-bankers-drive-markets-as-jp-morgans-stock-price-gets-a-wake-up-call-202405210817