Japan’s Nikkei hits all-time closing high, European shares hit record high after stellar results from US chipmaker Nvidia
Some reaction to the UK PMI data from economists:
Joshua Mahony, chief market analyst at Scope Markets, has looked at the global equity rally. Nasdaq futures have jumped nearly 2%, pointing to a strong open later today.
Nvidia earnings appeared to have given global markets a new lease of life, as a huge surge in earnings brought a collective sigh of relief. Overnight gains for the Nikkei 225 saw the Japanese index surge into a fresh multi-decade high, laying the groundwork for a European session that has seen the DAX push into new highs this morning. With 85% of the S&P 500 having reported earnings, we have seen an impressive 3.2% earnings growth for the fourth quarter thus far.
Nvidia’s number highlighted the company’s ongoing position at the top dog in the AI world, with the forecast of another 230% rise in revenues for Q1 signalling that this train shows no signs of slowing down. This fresh source of revenues for the tech sector comes as an advantageous time, boosting equity markets throughout this period of monetary tightening. Thus, there is a hope that the so-called Magnificent seven can continue to provide a backstop for US markets until we are in a position where the Federal Reserve can drive down rates and spark a fresh bout of economic growth.
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