World stocks steady as Nvidia boost tempers Jackson Hole caution

On Thursday, global stocks maintained a steady trajectory as Nvidia's optimistic outlook bolstered technology shares. However, anticipation surrounding Federal Reserve Chair Kevin Warsh's upcoming Jackson Hole speech and concerns over the Strait of Hormuz had dampened appetite for risk. Technology stocks surged by 1.8% in Europe, and were among the few sectors registering gains.

Nvidia, in particular, delivered a bullish forecast, projecting roughly 70% revenue growth for the fiscal year concluding January 2028. The pan-European STOXX 600 index closed 0.1% lower, while the CAC 40 blue chip index in Paris hit its lowest level in over a month, shedding 1%. The MSCI All Country World Index remained virtually unchanged, as gains in Asian technology shares and elevated U.S. futures countered Europe's underperformance.

Nvidia's revenue forecast surpassed expectations, propelling its shares up 6% in premarket U.S. trading. Furthermore, the chipmaker disclosed that memory component shortages would impede production expansion rates. Analyst Marco Vailati commented that the primary constraint currently appears to be production capacity rather than demand, suggesting the guidance could alleviate worries about the AI spending boom's sustainability.

In Paris, bank stocks declined by 3-4% due to investors' apprehension about upcoming budget and election risks, particularly with the first presidential debate slated for later that day. Asia-Pacific shares, excluding Japan, witnessed a 0.3% increase, extending a three-day gain streak. South Korea's KOSPI rose 1.5%, recouping earlier gains after the Bank of Korea increased interest rates by 25 basis points to 3%, as anticipated.

Taiwanese shares edged up by 0.3%, while Japan's Nikkei slipped by 0.2%. Nasdaq and S&P 500 futures gained 0.9% and 0.4%, respectively, following a less robust close on Wednesday, when data revealed the personal consumption expenditures index rose 0.2% in July compared to June. Although July core PCE inflation aligned with expectations, the details unveiled more inflationary elements.

Deutsche Bank's Jim Reid remarked that the robust economic momentum seen in durable goods orders and GDP data was challenging to reconcile with the perception of ongoing restrictive monetary policy. Benchmark 10-year Treasury yields remained stable around 4.66% as market participants awaited Warsh's Jackson Hole speech for additional insights into the trajectory of U.S. rates.

Vailati cautioned, "I don't want to sound pessimistic, but the risks are asymmetric. There is a greater chance of a negative reaction if Warsh takes a more restrictive stance compared to a positive reaction if he simply adheres to the existing stance." Brent crude futures bounced back from earlier dips, trading 0.8% higher at $88.5 as Qatar's prime minister prepared to visit Tehran in an endeavor to rekindle U.S.-Iran peace talks, though shipping traffic was still far from normal.

Gold hovered steady around $4,595 an ounce after a decline on Wednesday. Cryptocurrency markets also exhibited movement, with bitcoin climbing 1.3% to $79,461 after briefly exceeding $80,000 for the first time in over three months, while ether increased 1.3% to $2,504. Both assets have benefited from a resurgence in dollar devaluation trades following the U.S. Treasury Department's intervention in bond markets last week.

Gold has risen approximately 14% over the past month, bitcoin 25%, and ether 34%. The dollar index remained relatively steady at 99.14, nearing its highest level in the past week. Reporting by Danilo Masoni; additional reporting by Gregor Stuart Hunter; Editing by Thomas Derpinghaus and Barbara Lewis.