Stock Markets Diverge Before Nvidia Results, Fed Minutes

Stock markets diverged Wednesday as traders nervously awaited earnings from US tech darling Nvidia, in addition to minutes from the Federal Reserve that could shed fresh light on the outlook for interest rateS

London, (UrduPoint / Pakistan Point News - 21st Feb, 2024) Stock markets diverged Wednesday as traders nervously awaited earnings from US tech darling Nvidia, in addition to minutes from the Federal Reserve that could shed fresh light on the outlook for interest rates.

Hong Kong and Shanghai bourses jumped after Beijing's latest measures to boost China's economy, but Wall Street declines Tuesday weighed on other Asian indices.

London was dragged lower by top faller HSBC, whose share price dived more than seven percent after the banking giant revealed a shock $3-billion impairment on Chinese activities.

In the eurozone, Frankfurt and Paris stock markets edged higher in early afternoon deals.

World oil prices dipped and the dollar rose against the euro and yen.

"Markets remained skittish ahead of two major events that could have a significant influence over the direction of equities in the coming weeks," said Danni Hewson, head of financial analysis at stockbroker AJ Bell.

She added that the Fed minutes and Nvidia results "have the power to move the dial for investor sentiment".

On Thursday meanwhile, the European Central Bank publishes minutes from its most recent meeting on eurozone monetary policy.

The Fed and ECB releases will be closely examined for clues on when the pair could start cutting interest rates as inflation cools.

On the company front, traders are looking to see if Nvidia can meet high growth expectations thanks to fast uptake of artificial intelligence.

The group's stock had sunk Tuesday on Wall Street but it is still up markedly since the beginning of the year, with enthusiasm for AI-related companies having sent its share price rocketing over the past year.