NVIDIA overperforms market expectations
Market’s expectations were surpassed by the release of NVIDIA’s earnings reports, as the figures shown were better than expected both on an EPS and revenue level. Also the company released a positive forward guidance, thus creating support for the NVIDIA’s share price, despite some analysts highlighting that the support NVIDIA’s share price got, may have been lower than one would expect. Overall the release tended to provide a boost for a risk on market sentiment, providing optimism.
Xlence Research Team opinion
The release tended to provide support not only for the company’s share price but for the US tech sector as market worries tended to ease, and its characteristic that Nasdaq was on the rise. Should we see market worries about AI easing further, we may see US stock markets gaining further support.
Oil market focuses on US-Iran negotiations
Oil prices enhanced their downward motion in today’s European session. The release of the EIA weekly US oil inventories figure, showing a substantial increase of 15.4 million barrels, tended to enhance the bearish market sentiment as the slack in the US oil market reported by API, was practically was confirmed. However, the oil market’s attention is increasingly being placed on the US-Iranian negotiations in Switzerland. The result of the negotiations could determine whether the US will be proceeding with military action in Iran or not. It should be noted that the US has allready amassed military forces near Iran and seems ready for such a scenario. Yet the Iranians seem ready in the negotiations, to offer a deal to the US that could allow for a de-escalation of the tensions in the US-Iran relationships.
Xlence Research Team opinion
Should we see the US-Iranian negotiations bearing fruit, by producing more concrete evidence of a possible deal between Iran and the US, we may see oil prices retreating. On the flip side, should the two sides fail to reach or even near an agreement, and the negotiations break up, the possibility of a US military action could be enhanced and thus oil prices may rise asymmetrically.
Bitcoin’s rally surprises the market
Despite a considerable easing of the bearish market sentiment for Bitcoin, we still do not call for a bullish outlook. On the flip side the crypto’s movement, tends to underscore a stabilisation of Bitcoin’s price action. Should we see the market sentiment improving further, we may see Bitcoin’s price gaining more ground and vice versa, should we see a more risk off market sentiment emerging we may see the cryptocurrency’s price losing ground.
Xlence Research Team opinion
Should we see market worries for a possible US-Iranian conflict intensify we may see oil’s prices rising, while a thawing of the tensions could weigh substantially on oil prices. Similarly should EIA also report a substantial increase of US oil inventories, we may see oil prices losing ground.
USD weakens in the FX market
The greenback lost ground in the FX market yesterday, recovering some of the losses in today’s Asian session. Yet we highlight that JPY weakened against the allready weak USD yesterday, as the intentions of Japan’s PM Takaichi to nominate two doves for the board of BoJ, tends to make her dovish intentions clear and possibly caps any expectations for bank to hike rates.
Xlence Research Team opinion
The softness of the USD seems to have further potential, with fundamentals like the path of the Fed’s interest rates and the future of tariffs providing uncertainty in the markets, while forecasts for upcoming US financial releases also tend to provide headwinds for the greenback. On the other hand, one should not underestimate the resilience of the USD.
Disclaimer: This information is not considered investment advice or an investment recommendation, but instead a marketing communication.
