Morning Bid: Waiting on Nvidia for next leg of AI rally

As the morning markets open in Europe and globally, the focus remains on Nvidia as investors eagerly await the technology giant's upcoming earnings report. The artificial intelligence (AI) sector has been buoyed by strong performance from Nvidia, which has become a bellwether for the broader AI ecosystem, encompassing chipmakers and companies investing in data center expansion.

However, the tech sector has faced challenges, with Alibaba's massive share sale at a significant discount and investor disappointment over Samsung Electronics' shareholder-return plan. Meanwhile, Unitree, a leading humanoid robot maker, has seen its shares plunge by approximately 45% since its Shanghai debut, raising concerns about potential bubble risks and investor losses in the IPO market.

The lack of significant progress in resolving the U.S.-Iran conflict has led to losses in oil prices, as the U.S. unveiled an expanded sanctions regime against Iran but stopped short of the most punitive measures. Tehran responded with a promise of retaliation, confident that major trading partners would resist Washington's pressure campaign.

As investors await data releases from Europe this week, including German GDP figures and the German Ifo survey, the broader economic impact of persistently high energy prices remains a key focus. The upcoming data, along with the reopening of government debt auctions in Germany and the United Kingdom, as well as the release of the U.S. Conference Board's consumer confidence index, are expected to shape market sentiment on Tuesday.