Stock prices in Australia and Japan rose. An index of U.S.-listed Chinese stocks fell 1% on Thursday, bucking New York trading but partly reflecting a selloff in Hong Kong stocks in recent trading.
Both the S&P 500 and Nasdaq 100 rose on Thursday. Nvidia ended higher, even setting an intraday record, as investors readjusted their initial concerns about the company’s earnings outlook. The company assured investors that its new product lineup will continue to drive artificial intelligence-driven growth.
“The guidance seems to be lower growth, which could mean Nvidia is being conservative,” said Forrester Research analyst Alvin Nguyen. “In the short term, we don’t have to worry about AI demand. Nvidia is doing everything it needs to do.”
Bitcoin soared to a new high above $98,000 on bets that President-elect Donald Trump’s support for cryptocurrencies and a relaxed regulatory environment will lead to a boom in the industry. A report on FOX Business News suggested that former Commodity Futures Trading Commission Chairman Chris Giancarlo is being considered as the first “cryptocurrency czar” under the incoming administration.
Australian and New Zealand bonds were little changed on Friday after government bond yields rose across the curve on Thursday. The policy-sensitive two-year Treasury yield rose 3 basis points to close at its highest level since July. But Chicago Fed President Austan Goolsby said interest rates remained “fairly low” and expressed confidence that inflation was easing toward the central bank’s goals. Mixed U.S. labor statistics have spurred debate as the number of jobless claims fell short of expectations. Insurance claims, a measure of the number of people receiving benefits, continue to rise to a three-year high. Upward pressure on yields supported the dollar index. The dollar rose against most major currencies on Friday except the yen. Early Friday morning, the Japanese currency further strengthened against the dollar. Japan’s inflation rate exceeded the central bank’s target, as expected.
Elsewhere in Asia, investors will be watching the fallout from the US indictment of Gautam Adani on bribery charges. Shares in Adani Group plunged and the conglomerate called off a $600 million bond sale. The company denied the allegations.
Singapore’s economic growth in the third quarter was stronger than initially expected, prompting the city-state to upgrade its growth forecast for this year as the recovery gains momentum.
geopolitical storm
Geopolitical tensions continued to rise as Russia announced it had launched a new ballistic missile into Ukraine and oil and gold prices rose on Thursday. West Texas Intermediate was steady after rising about 2% in the previous session. Gold prices were little changed after Thursday’s fourth day of gains.
“Geopolitics always has the potential to create volatility in markets, and we’re seeing that with what’s happening in Ukraine,” said Themis Themistoklius, chief investment officer for EMEA at UBS Wealth Management. he told Bloomberg TV. “We have been advising our clients to include oil and oil derivatives in their portfolios to help hedge against potential volatility.”
Strategists at market research firm Fundstrat expect U.S. stocks to rise heading into the Thanksgiving holiday week before falling slightly in December.
“NVIDIA’s financial report leaves the possibility of a Thanksgiving rally intact,” they wrote. “AI’s trajectory hasn’t changed much, but the fact that uncertainty over Nvidia’s performance has passed is more important than the immediate market reaction.”
Meanwhile, concerns in Washington about Trump’s nomination for the top post at the U.S. Treasury may be easing to some extent. The race has three front-runners: hedge fund manager Scott Bessent, private equity executive Mark Rowan and former Federal Reserve member Kevin Warsh, according to BMO’s Ian Lingen. It is said that it is being narrowed down.
