World stocks steady as Nvidia boost tempers Jackson Hole caution

Stocks remained relatively stable on Thursday as Nvidia's optimistic outlook bolstered technology shares, despite concerns surrounding Federal Reserve Chair Kevin Warsh's Jackson Hole speech on Friday and uncertainties in the Strait of Hormuz. Technology stocks surged by 1.8 percent in Europe and were among the few sectors with positive performance, following Nvidia's forecast of approximately 70 percent revenue growth for the fiscal year concluding in January 2028.

The pan-European STOXX 600 declined by around 0.1 percent by 11:57 GMT, while political uncertainty in France contributed to the CAC 40 blue-chip index reaching its lowest level in over a month, falling by 1 percent. Meanwhile, the MSCI All Country World Index remained broadly unchanged as gains in Asian technology shares and higher U.S. futures offset losses in Europe.

Nvidia's revenue projection exceeded expectations, propelling its shares up by 6 percent in U.S. premarket trading. The chipmaker also cautioned that memory component shortages would hinder its production expansion. Nvidia has recently delivered earnings that surpassed expectations for several quarters in a row, bolstering sector sentiment.

Marco Vailati, head of research and investments at Cassa Lombarda, noted that production capacity appears to be the primary constraint rather than demand, suggesting that the guidance could alleviate concerns about the sustainability of the AI spending surge.

In Paris, bank stocks experienced a decline of 3-4 percent as investors worried about the upcoming budget and upcoming presidential election. The first presidential debate was scheduled for later on Thursday. MSCI's global Asia-Pacific index excluding Japan rose by 0.3 percent, marking the third consecutive day of gains. South Korea's KOSPI increased by 1.5 percent, recovering from earlier losses following the Bank of Korea's decision to raise interest rates by 25 basis points to 3 percent, in line with market predictions.

Japanese shares experienced a slight decline of 0.2 percent on the Nikkei. Meanwhile, Nasdaq and S&P 500 futures climbed by 0.9 percent and 0.4 percent, respectively, following a weaker close on Wednesday, as personal consumption expenditures index rose 0.2 percent in July from the previous month, despite June's decline of 0.1 percent.

Strong economic momentum, evidenced by durable goods orders and GDP data, was difficult to reconcile with the view that monetary policy remains restrictive.

U.S. Treasury yields remained relatively stable at 4.66 percent as investors awaited Warsh's Jackson Hole speech for additional hints on the trajectory of U.S. rates. Marco Vailati expressed apprehension about the potential for asymmetric risks, stating that a more restrictive stance from Warsh could have a more significant negative impact than a more accommodative stance would have a positive effect.

Brent crude futures reversed earlier declines, trading 0.8 percent higher at $88.5 as Qatar's prime minister prepared to visit Tehran in an attempt to revive U.S.-Iran peace talks. Gold remained steady around $4,595 an ounce after a decline on Wednesday. Cryptocurrency markets also saw gains, with Bitcoin rising 1.3 percent to $79,461 after briefly surpassing $80,000 for the first time in over three months, and Ethereum increasing by 1.3 percent to $2,504.

Both assets benefited from a resurgence in dollar debasement trades following the U.S. Treasury Department's intervention in bond markets last week. Over the month, gold has risen by approximately 14 percent, Bitcoin by 25 percent, and Ethereum by 34 percent. The dollar index remained relatively unchanged at 99.14, near its highest level of the past week.