European stocks close mixed; Nvidia’s results, French stability in focus
Investing.com - European stocks traded in a mixed fashion Wednesday, with investors gearing up for an important earnings release from chipmaker Nvidia amid renewed political instability in France.
The DAX index in Germany dropped 0.5%, while the CAC 40 in France gained 0.4% and the FTSE 100 in the U.K. declined 0.1%.
Nvidia’s results in spotlight
European equities traded in tight ranges Wednesday as investors awaited the release of second-quarter results from Nvidia (NASDAQ:NVDA), a key barometer of the artificial intelligence boom, after the close on Wall Street.
Nvidia’s results are likely to set the tone for near-term risk appetite as they will offer evidence as to whether the sky-high valuations for the tech stocks that have ridden the AI boom are justified.
Nvidia’s value has soared in recent years, giving it the biggest weighting in the S&P 500 index and an outsized influence on U.S. market performance.
Overall, the AI chipmaker is set to report a 53% rise in second-quarter revenue to $46 billion, according to LSEG data, but this may not be enough to keep investors happy given this would still be a far cry from the triple-digit growth it witnessed for many recent quarters.
French benchmark index rebounds
The French markets will remain in the spotlight Wednesday, with Prime Minister Francois Bayrou set to lose a confidence vote on his debt-cutting plan next month, likely cutting short his brief time as leader of a minority government.
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If Bayrou falls, President Emmanuel Macron could dissolve parliament and hold fresh legislative elections or install a new government. However, neither course of action is likely to solve France’s budget issues or political gridlock.
France’s blue-chip CAC 40 edged higher Wednesday, but is still down more than 3% this week, while the gap between French and German 10-year government bond yields, a gauge of the premium investors require to hold French debt, traded near the largest level since April.
Elsewhere, sentiment among German consumers is expected to fall for the third time in a row in September, with the GfK consumer sentimentindex declining to -23.6 points from a slightly downwardly revised -21.7 points the month before.
JD Sports Q2 sales slump
In the corporate sector, JD Sports Fashion (LON:JD) reported a deeper decline in underlying sales for its second quarter, reflecting weakness in the U.K., though there were signs of stabilisation in its key U.S. market after a sharp decline in the previous quarter.
Rio Tinto (LON:RIO) said it will streamline operations into three business units, Iron Ore, Aluminium & Lithium and Copper, as part of a plan to simplify the miner’s structure and sharpen focus on its most profitable assets.
Hochschild Mining (LON:HOCM) lowered its full-year production outlook after disappointing output from its Mara Rosa mine in Brazil, now expecting just 35,000–45,000 ounces of gold from the site in 2025, less than half of its earlier 94,000–104,000 ounce forecast.
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Crude rises after sharp drop
Oil prices moved higher after hefty losses in the prior session as traders weighed hefty new U.S. tariffs on India, the world’s third-biggest crude consumer.
At 11:53 ET, Brent futures rose 0.4% to $66.99 a barrel, and U.S. West Texas Intermediate crude futures gained 0.7% to $63.67 a barrel.
Both contracts fell over 2% on Tuesday after beginning the week on a two-week high.
Trump’s doubling of tariffs on goods from India to as much as 50%, supposedly because of India’s Russian oil buying, took effect as scheduled on Wednesday.
Traders are also watching for fresh developments in the Ukraine war, with U.S. special envoy Steve Witkoff scheduled to meet Ukrainian representatives in New York this week.
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