【True Zoom Finance】Market Morning Report: Nvidia falls short of highest expectations; China revises photovoltaic manufacturing industry standards
NVIDIA (NVDA.US) reported Q4 revenue outlook below the highest market expectations. CEO Jensen Huang stated that the Blackwell product line has entered "full production" and will remain in short supply for several quarters.
Overnight Highlights
The Nasdaq closed lower, pausing its strong rally from the previous session. The dollar rose, resuming its post-election gains after three consecutive days of decline, as investors sought more clarity on the Federal Reserve's rate plans and policies proposed by U.S. President-elect Trump. U.S. Treasury yields climbed due to weak demand at a Treasury auction and traders assessing when the Fed might pause its rate-cut cycle, as U.S. economic growth remains above expectations. Oil prices fell after data showed U.S. crude and gasoline inventories rose more than expected, but escalating tensions between Russia and Ukraine limited the decline. Gold prices rose for a third straight day, hitting a one-week high, as heightened Russia-Ukraine tensions fueled geopolitical concerns, driving investors toward safe-haven assets.
International News
l Fed Governor Bowman said she favors caution on further rate cuts given slowing progress on inflation. See: [Market Review] Why Is Gold Still Falling After the Election and CPI Data?
l Fed Governor Cook noted that, considering inflation progress and a robust labor market, gradually lowering rates toward a more neutral stance may be appropriate over time.
l Bitcoin hit a record high for the second straight day, nearing $95,000, as MicroStrategy ramped up bond issuance to fund purchases.
l The ECB reported that negotiated wages rose 5.4% YoY in Q3, up from 3.5% in the prior quarter, driven mainly by wage growth in Germany.
l ECB Governing Council member Stournaras said eurozone inflation is nearing a sustainable 2%, so policymakers must avoid undershooting the target.
l The ECB warned that rising trade tensions pose additional risks to the eurozone economy and could amplify financial vulnerabilities.
l Bank of England Deputy Governor Ramsden said he would consider voting for faster rate cuts if uncertainties around the UK economy ease in coming months.
l NVIDIA (NVDA.US) reported Q4 revenue outlook below the highest market expectations. CEO Jensen Huang stated that the Blackwell product line has entered "full production" and will remain in short supply for several quarters.
Greater China News
l A survey by the Japanese Chamber of Commerce in China showed worsening pessimism among Japanese firms, with nearly half scaling back or pausing investments.
l Taiwan's Q3 net outward direct investment rose to $10.66 billion, the second-highest on record, bringing the year-to-date total to $24.93 billion, a record high.
l China's National Energy Bureau reported January-October electricity consumption rose 7.6% YoY to 8.1836 trillion kWh, with October up 4.3% YoY to 774.2 billion kWh, a sharp slowdown from September.
l Nio (NIO.US) posted Q3 revenue of RMB 18.7 billion ($2.6 billion), below expectations, as the Chinese EV maker continues to struggle with intense domestic price wars.
Commodities & Forex
l The dollar rose for the first time in four days in New York trading as demand for U.S. Treasuries and safe-haven currencies eased amid ongoing Russia-Ukraine tensions.
l Oil fell as bearish U.S. inventory data halted a two-day rally fueled by escalating geopolitical risks.
l Gold rose for a third day as traders sought safety amid the latest Russia-Ukraine developments.
Earnings & Data Watch
l U.S. Initial Jobless Claims (Nov 16, est.: 220K, prev.: 217K)
Author: Terry Chow
Source: Goldhorse Capital Extramile
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