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Markets await Nvidia earnings, PMI data

US and Asian markets started the week with mostly mild gains while major European markets were closed for a long holiday weekend on Monday. Tech stocks were propped up ahead of Nivida’s quarterly earnings, due out on Wednesday. In addition to earnings, market participants will dig through Purchasing Managers Indices on Thursday to help them better understand the state of the world’s key economies. In central banking, the Reserve Bank of New Zealand announces its latest interest rate decision on Wednesday.

Shane Strowmatt, LGT
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The Dow Jones Industrial broke above 40,000 points intraday again on Monday, only to finish the day down 0.5%, while the S&P 500 gained a mild 0.1%. The tech-heavy Nasdaq-100 closed up 0.7%, hitting a fresh all-time high just days before Nvidia releases its quarterly figures on Wednesday. The chipmaking giant added the largest amount to its market capitalisation of any stock in a single trading day when it last reported earnings in February.

Precious metals continued to surge higher to start the week with gold hitting a record high on Monday. Gold futures traded above USD 2450 per ounce before retreating somewhat later in the day on Monday. Silver was trading at more than USD 32 per ounce, its highest level in more than a decade. Copper futures were also hovering around all-time highs.

On Tuesday, stock markets in the Asia-Pacific region retreated from Monday’s gains. In Tokyo, the Nikkei 225 lost 0.1% and South Korea’s Kospi was down 0.8%. In Australia, the S&P/ASX 200 lost 0.1%.

Last week, the Chinese government unveiled measures to prop up the country’s ailing property sector. Most importantly, the government plans to buy homes that do not sell easily on the market. The People’s Bank of China (PBoC) will provide more than USD 40 billion in funding for the purchases. On Tuesday, Hong Kong's Hang Seng Index was 1.6% lower, while the Shanghai Composite fell 0.3%.

Also last week, euro-area inflation was confirmed to be at 2.4% on an annual basis in April. That was the same pace of price growth as in March. In the European Union, inflation was 2.6% in April. Many European markets are set to reopen on Tuesday after a long holiday weekend.

In Switzerland, industrial production fell sharply in the first quarter of the year, according to data released late last week. Industrial production slumped by 3.1% when compared to the same period of the previous year. The construction industry contracted by 1.8% on an annual basis.

Corporate news in focus: There is no major corporate news scheduled today.

Economic data in focus: German Producer Price Index, Canada Consumer Price Index, Bank of England Governor Andrew Bailey speaks.


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Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.

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