US futures aim for a bounce after Nvidia turmoil, but rising Treasury yields and a firm dollar keep markets cautious.
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Trading in the European morning was relatively subdued, though underlying tensions remain visible.
On Wall Street, the Nvidia-related turmoil is causing disruption, yet US futures are taking a calmer approach today and are pointing toward a slight opening bounce later. That follows yesterday's recovery, which saw losses trimmed just before the bell. Nvidia shares are trading roughly 1.5% higher pre-market, as technology stocks continue to navigate the contrasting forces of dip-buying and renewed pressure in the bond market.
In the bond space, long-dated Treasury yields are pushing higher, with the 10-year yield approaching 5.14% and the 30-year hovering near 5.48%. Elevated borrowing costs tend to weigh on growth stocks, particularly at a time when tech valuations are being questioned given the massive spending on AI infrastructure and doubts about whether it will justify such high prices.
With yields staying elevated, the dollar remains bid. USD/JPY is testing the 160.00 level, while AUD/USD has slipped 0.3% on the day to 0.6789.
In Europe, risk appetite is more cautious, with regional benchmark indices edging lower as the strong gains from earlier in the week appear to be losing steam. Still, the week has been a positive one for European stocks, as investors have largely shrugged off the turbulence in US technology shares.
Turning to commodities, gold is up 0.4% at $3,891, but is locked in a tight struggle as buyers and sellers contend around the 100-week moving average of $3,896 as the week ends. Oil prices are also hesitant, with WTI crude nearly unchanged at $88.72.
Later today, focus will turn to the US producer price figures, which could stoke fresh inflation fears and stir up bond markets before the week closes.
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The second estimate for eurozone Q3 GDP confirmed 0.4% quarterly growth, but Ireland's volatile expansion masks weakness in Germany, Italy, and France.
Spain's October final CPI held at 4.9% year-on-year, matching estimates. Core inflation was 3.1%. Markets price 82% odds of an ECB rate move in December.
French inflation accelerated in October, driven by energy prices. Core and services inflation also rose, reinforcing expectations of a December ECB rate hike.
Germany's October wholesale price index rose 0.4% month-on-month, easing from a 1.9% gain in September.