Expect significant new tariffs on Chinese imports and moderate levies on goods from other nations , as President-elect Donald Trump rolls out his protectionist agenda. However, with his preference for chaotic policymaking and sudden shifts , there’s uncertainty on how soon these import taxes will actually hit. Dubbed “ Tariff Man ,” Trump aims to use tariffs both strategically and tactically . He’s mentioned taxing all Chinese goods up to 60% and potentially setting 10%-20% tariffs on imports globally , but details on these plans remain vague . Key players within Trump’s team are divided: Robert Lighthizer , a staunch tariff advocate, sees permanent duties as crucial to balance US trade , while others, like billionaires John Paulson and Scott Bessent , view tariffs as temporary leverage. Trump’s previous administration had mixed feelings, especially on national security-related trade limits , which he sometimes dismissed, favoring an “open for business” approach. High-profile busin
Global stock markets hovered near record peaks on Wednesday, with attention focused on the highly anticipated earnings report from chipmaking giant Nvidia. The company's performance is seen as a critical indicator for the broader market, particularly in the technology sector. Meanwhile, sterling reached a two-and-a-half-year high, driven by expectations that the UK will delay interest rate cuts compared to the US.
Key Takeaways:
Nvidia's Market Impact: Nvidia's earnings report is poised to significantly influence global markets. With a staggering 3000% increase in stock price since 2019 and a market capitalisation of $3.2 trillion, any substantial move in Nvidia's shares could drive a near $300 billion swing in market value. This makes it potentially the largest earnings-related market move ever. Analysts highlight Nvidia's revenue guidance as a key barometer for AI-related capital expenditure, setting the tone for other major tech stocks.
Sterling's Surge Amid Rate Cut Expectations: The British pound reached its highest level in over two years, buoyed by speculation that the Bank of England (BOE) will be more cautious in cutting interest rates compared to the US Federal Reserve. While markets anticipate four consecutive rate cuts from the Fed, the BOE is expected to proceed with more gradual reductions, which has supported sterling's outperformance among major currencies.
Market Stability Amid Varied Sector Performance: While global stocks remain near record highs, market performance varied across sectors. E-commerce shares in Hong Kong stabilized after recent declines, while China’s Anta Sports saw an 8.5% gain following strong profits and a substantial buyback. In contrast, Australian gambling company Tabcorp faced a sharp 12% drop after missing earnings targets due to rising costs.
In summary, Nvidia's upcoming earnings report is a pivotal event that could drive significant market movements, particularly in the technology sector. Meanwhile, sterling's strength underscores divergent expectations in global interest rate policy, adding another layer of complexity to the current market environment.
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