FX.co ★ European Shares Set To Rise As Nvidia Reports Record Results

European stocks are poised to open higher on Thursday, boosted by Nvidia's impressive quarterly earnings report and the announcement of a 10-for-1 stock split.

In Asia, stock performances were mixed. Mainland China's and Hong Kong's benchmark indexes both declined by over 1 percent following the Chinese military's extensive two-day "punishment drills" around Taiwan. These exercises, involving various military branches, were conducted shortly after Taiwan President Lai Ching-te assumed office. Conversely, Japan's Nikkei index saw an increase of over 1 percent, driven by gains in technology stocks.

The dollar maintained its position near a one-week high, bolstered by hawkish Federal Reserve minutes. Meanwhile, gold continued its downward trend, trading below $2,400 per ounce due to concerns that the Federal Reserve might keep interest rates elevated for an extended period. Oil prices also extended their decline for the fourth consecutive session, nearing a two-month low amidst demand concerns.

In terms of economic data, preliminary private sector PMIs from Germany and the Eurozone, along with the Eurozone flash consumer sentiment survey results, are expected to capture investors' interest later in the day.

In the United States, market movements may be shaped by reactions to reports on weekly jobless claims and new home sales. U.S. stocks experienced a lack of direction before closing lower overnight, influenced by the minutes from the April 30-May 1 Federal Reserve meeting. The minutes revealed officials' disappointment with recent inflation data and discussions about potential further rate hikes if inflation surges. Given the strength of the economy, officials believed that "disinflation would likely take longer than previously thought."

Additionally, mixed quarterly results from retailer Target raised concerns about the robustness of the U.S. consumer market. Consequently, the Dow Jones Industrial Average fell by 0.5 percent, the S&P 500 declined by 0.3 percent, and the tech-heavy Nasdaq Composite slid by 0.2 percent.

In Europe, stocks fell for a second consecutive session on Wednesday, reaching one-week lows. Data indicated that U.K. inflation rose at its slowest pace in April since July 2021, diminishing hopes for a rate cut in June. The pan-European STOXX 600 dipped by 0.3 percent, while Germany's DAX also declined by 0.3 percent. Both France's CAC 40 and the U.K.'s FTSE 100 shed around 0.6 percent.