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Nvidia turmoil weighs on global stocks

Jensen Huang’s exit from Nvidia helped push US stocks lower on Thursday, while uncertainty over the implications for the artificial intelligence (AI) industry weighed on most Asian markets on Friday. In Europe, strength among insurers helped German and Swiss benchmarks finish Thursday higher. Expectations of additional US interest rate rises compounded pressure on riskier assets, sending bitcoin sharply lower. Oil extended its advance as attacks on Saudi energy facilities and risks to Middle Eastern shipping fuelled supply concerns.

  • Date
  • Auteur Shane Strowmatt, Senior Investment Writer
  • Temps de lecture 5 minutes

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Asian stocks retreat amid Nvidia leadership uncertainty

Asian equities weakened on Friday as chipmaker Nvidia’s leadership upheaval unsettled technology investors. South Korea’s KOSPI declined 1% and Hong Kong’s Hang Seng lost 1.6%, while Japan’s Nikkei 225 retained a 0.5% gain. Investors weighed potential disruption to AI supply chains and tighter US restrictions on Chinese access to advanced chips after Jensen Huang’s resignation and the appointment of chief financial officer Colette Kress as interim chief executive. Higher oil prices added pressure, with Brent near USD 96 a barrel after rising 3.3% on Thursday amid attacks on Saudi energy infrastructure and threats to shipping through the Strait of Hormuz.

US stocks fall after Nvidia chief resigns

US equities declined on Thursday, with the S&P 500 falling 0.4% to 7592.40 points, the Dow Jones losing 0.4% to 52,297.09 and the Nasdaq-100 slipping 0.3% to 28,289.19. Chipmaker Nvidia dropped 4% after chief executive Jensen Huang resigned, with chief financial officer Colette Kress taking temporary charge. Rivals AMD and Broadcom gained 5.9% and 5.5%, respectively, as investors shifted funds towards potential beneficiaries of Nvidia’s difficulties. Sentiment also remained cautious after US President Donald Trump said an agreement with Iran was unnecessary, tempering recent hopes for an end to the war. After rising on Thursday, Brent crude oil futures gained a further 0.7% to USD 96.50 per barrel.

German and Swiss stocks extend gains

Germany’s DAX rose 0.4% to 26,771.88 points on Thursday after briefly exceeding 27,000 for the first time, while Switzerland’s SMI gained 0.6% to 15,149.43 after reaching a record 15,200.17. Insurers supported both markets, with Munich Re advancing 2.9%, Allianz gaining 1.9% after raising its annual outlook and Zurich Insurance climbing 2.1% following broadly in-line quarterly figures. Swiss staffing provider Adecco surged 14.8% as investors welcomed quarterly profitability and restructuring plans, while German engineering group Gea fell 4.3% after announcing its chief executive’s planned departure.

UK growth accelerates as services strengthen

UK gross domestic product expanded by 0.7% in the third quarter, up from 0.5% in the previous quarter and matching economists’ expectations, with annual growth reaching 1.9%, according to figures released on Thursday. Services output increased by 0.9%, supported by information and communication businesses, where AI and cloud computing activity contributed to growth, although statisticians could not measure their precise impact. Monthly GDP rose by 0.2% in September, exceeding expectations after stagnating in August. The economy’s resilience strengthens the case for another Bank of England interest rate increase in December following last week’s rise, although budget uncertainty and the US-Iran conflict could dampen activity.

Bitcoin falls below USD 70,000

Bitcoin dropped 6.3% to around USD 68,900, its lowest level in almost three months, as expectations of further US interest rate increases weakened demand for cryptocurrencies. Stronger-than-expected October inflation reinforced expectations of a Federal Reserve (Fed) rate rise in December, while Democratic majorities in both chambers of Congress heightened concerns about tighter crypto regulation. Gold rebounded 0.4% to USD 3892.64 an ounce after touching a 13-month low on Thursday, but remained down 3.5% for the week as higher US bond yields, a stronger US dollar and expectations of further Fed rate increases weighed on demand.

Corporate and economic calendar

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

Economic data in focus: Italian trade balance (10:00), euro-area trade balance (11:00), US Producer Price Index (14:30).

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Editor: Alessandro Fezzi
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