FX.co ★ Nvidia Earnings In Focus On Wall Street

U.S. stock index futures are set to open on a positive note this Wednesday, with expectations for further gains following a generally stronger performance in Tuesday's trading session.

The optimism seen on Wall Street is largely driven by anticipation surrounding Nvidia's (NVDA) forthcoming quarterly results, expected after today's market close. Nvidia, a key player in the market lately, is up by 0.5% in pre-market trading after a 4.9% rise yesterday.

However, initial buying enthusiasm might be tempered by persistent concerns over escalating Ukraine-Russia tensions. The absence of significant U.S. economic reports could also lead some traders to remain cautious ahead of Nvidia's earnings release, although upcoming remarks from several Federal Reserve officials might garner attention.

Among notable stocks, Target (TGT) is experiencing a significant pre-market decline after reporting disappointing third-quarter results and downgrading its full-year outlook. Chinese electric vehicle manufacturer Nio (NIO) is also expected to face downward pressure following a sales report that fell short of analyst expectations. Conversely, Comcast (CMCSA) may attract early interest after announcing plans to spin off a portfolio of NBCUniversal's cable networks, including USA Network, CNBC, and MSNBC, into a new public company.

On Tuesday, stocks initially declined but made a remarkable recovery throughout the day. Both the Nasdaq and S&P 500 bounced back to positive territory, although the Dow remained in the red. Ultimately, the markets closed with mixed results; the Dow dropped 120.66 points, or 0.3%, to 43,268.94, while the S&P 500 climbed 23.36 points, or 0.4%, to 5,916.98, and the Nasdaq surged 195.66 points, or 1.0%, to 18,987.47.

Wall Street's early struggle on Tuesday was attributed to worries about mounting tensions between the U.S. and Russia regarding the ongoing Ukraine conflict. This development followed U.S. President Joe Biden’s decision to permit Ukraine to use U.S.-made long-range missiles against Russian targets, prompting Russian President Vladimir Putin to revise the nation's nuclear policy. Kremlin spokesperson Dmitry Peskov emphasized that Russia now maintains the option to employ nuclear weapons in response to conventional attacks threatening its sovereignty or territorial integrity, particularly involving Belarus.

The initial selling pressure eased as Nvidia's stock recovery bolstered the Nasdaq's turnaround. Additionally, Walmart (WMT) reported better-than-expected third-quarter earnings and increased its annual forecast, contributing to market gains. In contrast, Lowe's (LOW) shares declined despite exceeding earnings estimates, as the company projected a drop in full-year sales.

In terms of market sectors, computer hardware stocks extended their recent recovery, driven by a 3.3% increase in the NYSE Arca Computer Hardware Index. This index continued to rebound after hitting a two-month low last Friday. Super Micro Computer (SMCI) led the sector higher, bolstered by its appointment of BDO as an independent auditor and submission of a compliance plan to Nasdaq. Gold stocks also gained strength, following a rise in gold prices, with the NYSE Arca Gold Bugs Index climbing 2.3%. However, airline stocks faced a sharp decline, pushing the NYSE Arca Airline Index down by 4.6%.

**Commodities and Currency Markets**

In the commodities arena, crude oil futures are up $0.46, trading at $69.85 a barrel, following a $0.23 increase to $69.39 a barrel on Tuesday. Meanwhile, gold prices are on the rise, with an ounce trading at $2,644, up $13 from the previous session's close of $2,631. Gold gained $16.40 on Tuesday.

In currency markets, the U.S. dollar is exchanging at 155.73 yen, up from Tuesday's close of 154.66 yen. Against the euro, the dollar is currently fetching $1.0558, slightly down from yesterday's $1.0596.Asian equity markets concluded with mixed results on Wednesday, influenced by anticipation surrounding NVIDIA Corp's upcoming earnings release. Investor sentiment was also impacted by the People's Bank of China's decision to maintain current interest rates and ongoing concerns over the intensifying Russia-Ukraine conflict.

In China, the Shanghai Composite Index rose by 0.7% to close at 3,368.56, fluctuating between 3,375.25 and 3,333.00 during the day's trade. The Shenzhen Component Index saw a slight increase of 0.8%, ending at 10,875.45.

Japan's Nikkei 225 Index experienced a minor dip of 0.2%, closing at 38,352.34 within a trading range of 38,520.45 to 38,180.15. Notably, Tokyo Gas surged nearly 13% amid reports of American activist investor Elliott Management acquiring a 5% stake. Sompo Holdings appreciated by 11.4%, Seven & I Holdings increased by 6.5%, DeNA Co. gained 5.3%, and Mercari rose by 3.8%.

Conversely, Tokio Marine Holdings fell nearly 7%, MS&AD Insurance Group Holdings declined by 4.9%, while Keisei Electric Railway, Odakyu Electric Railway, and Sumitomo Osaka Cement each dropped over 3%.

The Hang Seng Index in Hong Kong saw a modest rise of 0.2%, closing at 19,623.39, with trades ranging from 19,752.93 to 19,575.91.

South Korea's Kospi Index climbed 0.4%, settling at 2,482.29, within a trading range of 2,471.79 to 2,489.15.

Australia's S&P/ASX200 Index slightly retreated by 0.6%, closing at 8,326.30, despite setting a new 52-week high. The range of trading for the day was between 8,318.20 and 8,379.80. Advancers included Tabcorp Holdings, West African Resources, Healius, and Genesis Minerals, each gaining over 2%, with Block rising just under 2%.

Meanwhile, Neuren Pharmaceuticals continued its decline, falling by 7.5%, while New Hope Corp., Karoon Energy, Brambles, and Netwealth Group each fell more than 3%.

The New Zealand Stock Exchange's NZX 50 Index slipped by 0.6%, closing at 12,737.06, compared to the previous close of 12,816.32, with trades spanning 12,700.26 to 12,824.32. EROAD led gains with an increase of 5.7%, followed by Pacific Edge in healthcare at 5.6%, with Synlait Milk and Genesis Energy both advancing over 5%. Summerset Group rose by 2.9%.

ANZ Holdings led decliners with a 3.6% loss, while Skellerup and Mercury NZ both fell by over 3%. Fisher & Paykel Healthcare slipped by 2.6%, with Kiwi Property declining by more than 2%.

**Europe**

In European markets, stocks generally trended upward on Wednesday, rebounding slightly after significant losses the preceding session. Despite ongoing apprehensions surrounding the Russia-Ukraine situation, investors showed increased interest in stocks, factoring in earnings, corporate updates, and the regional economic forecast.

The U.K.'s FTSE 100 Index improved by 0.2%, while both the French CAC 40 Index and Germany's DAX Index rose by 0.5%.

On the geopolitical front, the U.S. Embassy in Kyiv remained closed on Wednesday following warnings of a potential major Russian air assault on the city. This precaution followed Russian official statements committed to retaliating against President Joe Biden's approval for Ukraine to attack Russian sites using U.S.-supplied missiles, a decision that incited Kremlin disapproval.

The Greek and Spanish embassies in Kyiv also closed to the public after multiple air raid alarms sounded overnight in the Ukrainian capital.

In the U.K. market, Sage Group shares soared nearly 20% following strong annual earnings and the announcement of a new share repurchase program. Severn Trent climbed 3.5% due to a significant turnaround in interim profits, while United Utilities, Anglo American Plc, Beazley, IAG, Prudential, Mondi, Imperial Brands, Barclays Group, and Standard Chartered rose between 1% and 2.5%.

Conversely, Convatec Group declined by nearly 3%, with Persimmon, British Land Company, Admiral Group, Entain, Taylor Wimpey, Segro, Marks & Spencer, Vistry Group, EasyJet, and Howden Joinery falling by 1% to 2.3%.

In the German market, Rheinmetall rose by 2.7%, continuing its gains from the previous session, with Brenntag increasing by nearly 2%. HeidelbergCement, Zalando, SAP, Deutsche Bank, Deutsche Telekom, and Adidas gained between 1% and 1.3%.

Meanwhile, Porsche fell by more than 3%, and Symrise, Sartorius, Fresenius, Merck, and Mercedes-Benz showed moderate declines.In Paris, Edenred has experienced a nearly 4% increase following a recent rating upgrade. Kering has risen by 2.3%, and Teleperformance is advancing with a gain of 1.8%. Meanwhile, Dassault Systemes, Airbus, LVMH, and Societe Generale have each seen improvements ranging from 1% to 1.2%.

In contrast, STMicroElectronics, Thales, Capgemini, Renault, and Stellantis have suffered declines, with losses ranging from sharp to moderate.

Looking at the Swiss market, shares of the private equity firm Partners Group have climbed by 1.5% after acquiring a majority stake in the Spain-based hospitality platform, Bluesea Hotels. As part of the agreement, Partners Group will join Bluesea's board of directors to oversee renovations, expansion, and hotel acquisitions in collaboration with Portobello Capital.

On the economic front in the UK, consumer price inflation has exceeded expectations in October, reducing the likelihood of a rate cut at the forthcoming monetary policy meeting in December. The consumer price index increased by 2.3% on an annual basis following a 1.7% rise in September, the lowest since April 2021, as reported by the Office for National Statistics. This rate once again surpassed the Bank of England's 2% target and exceeded economists' forecasts of 2.2%.

Core inflation saw an unexpected increase to 3.3% from 3.2% in September, surpassing the anticipated rate of 3.1%.

In Germany, producer prices fell by 1.1% in October on a yearly basis, following a 1.4% decrease in the previous month, as indicated by Destatis data. On a month-to-month comparison, producer prices rebounded by 0.2% in October after a 0.5% decline in September.

Eurozone construction output dipped by 0.1% in September after remaining flat in August, according to Eurostat data. The annual decline in construction output moderated to 1.6% from a previous 2.5%.

**U.S. Economic News:**

Federal Reserve Vice Chair for Supervision, Michael Barr, is scheduled to testify on the oversight of prudential regulators before the House Financial Services Committee at 10 a.m. ET.

At 10:30 a.m. ET, the Energy Information Administration plans to release its report on crude oil inventories for the week ending November 15th. Expectations are for crude oil inventories to increase by 0.8 million barrels after a rise of 2.1 million barrels in the prior week.

Federal Reserve Board Governor Lisa Cook will speak on the economic outlook and monetary policy at a "UVA Economics Presents" event at the University of Virginia at 11 a.m. ET.

At 12:15 p.m. ET, Federal Reserve Board Governor Michelle Bowman will discuss the "Approach to Agency Policymaking" before the Forum Club of the Palm Beaches.

The Treasury Department is expected to announce the results of the auction for $16 billion worth of twenty-year bonds at 1 p.m. ET.

At 4 p.m. ET, Boston Federal Reserve President Susan Collins is scheduled to provide remarks and participate in a conversation at an event hosted by the University of Michigan Gerald R. Ford School of Public Policy.