As of 12:00 Germany time (CEST, UTC+2)
TL;DR: Markets stabilized on Thursday as stronger Asian technology shares, Nvidia’s earnings and tentative hopes around U.S.-Iran talks helped offset still-elevated oil prices and bond yields near recent highs.
In Asian Equity Markets stocks rose as technology shares led the region higher following Nvidia’s stronger-than-expected results and guidance, while Samsung also rallied after its union suspended strike plans. MSCI’s broadest index of Asia-Pacific shares advanced around 2.6 percent, helped by gains across chip-linked names. The move suggested that AI-related momentum remained intact despite the recent rates shock, although sentiment stayed uneven given continued uncertainty around U.S.-Iran negotiations and the path of oil prices.
In Currency Markets the U.S. dollar was broadly steady after pulling back from Wednesday’s six-week high, as investors balanced reduced expectations for Federal Reserve rate cuts against tentative signs of geopolitical de-escalation. The dollar index traded around 99.15, while the euro held near $1.16. The yen remained under pressure, with markets still attentive to the risk of Japanese intervention after the currency’s recent slide toward the 160 per dollar area.
In U.S. Equity Markets stocks rebounded on Wednesday as lower Treasury yields and a sharp decline in oil prices helped support risk appetite before Nvidia’s results. The S&P 500 rose around 1.1 percent, while technology and chip-related shares led the advance. Nvidia later reported stronger-than-expected earnings and revenue guidance, while also announcing a large share buyback, although the stock traded slightly lower after the report as investors questioned how much future AI growth was already priced in.
In Commodities Markets oil prices edged higher on Thursday after the prior session’s sharp decline, with markets still pricing uncertainty around U.S.-Iran peace negotiations and the risk of disruption around the Strait of Hormuz. Brent crude traded around $105.42 per barrel, while WTI was near $98.76, after both benchmarks had fallen sharply on Wednesday on hopes that talks were moving closer to a deal. The broader energy backdrop remained volatile: immediate conflict risk appeared lower, but the supply-risk premium had not fully disappeared.
In European Equity Markets stocks edged higher in early trade as investors weighed Nvidia’s results, ongoing Iran diplomacy and still-elevated bond yields. The STOXX 600 rose around 0.2 percent after earlier weakness, while U.S. futures were broadly steady. Technology shares remained a key focus after Nvidia’s earnings, but the overall tone was still cautious, with investors reluctant to fully price out the inflation shock while oil prices remained elevated and Middle East headlines continued to drive intraday sentiment.
In Bond Markets U.S. Treasury yields remained near recent highs after investors continued to reduce expectations for Federal Reserve rate cuts. The U.S. 10-year yield edged up to roughly 4.58 percent, still close to the 16-month high reached earlier in the week. The stabilization in yields helped equities recover from the prior pressure, but the broader rates backdrop remained restrictive, with markets still focused on whether elevated energy prices could keep inflation risk higher for longer.
