European stocks hit record high after Nvidia storm rattles Asia
The comparatively tech-light Stoxx 600 hit its first record high since August, but elsewhere the strains are showing
On Thursday (Nov 12), global stocks faced fresh turbulence as a scandal threatened to oust Nvidia's chief executive officer, Jensen Huang. The Stoxx 600, a tech-light index, achieved its first record high since August, but other markets were showing signs of strain. Asian markets suffered declines following reports that Nvidia's board had considered the fate of Huang, causing the company's shares to drop nearly 7% in pre-market US trading.
Chinese tech firms utilizing Nvidia chips for their AI models saw significant drops in Hong Kong, with Alibaba falling 6.7% and Tencent 2.6%. Brent oil prices climbed above $92 a barrel, driven by tensions in the Middle East, while the US dollar hit a 19-month high due to US Federal Reserve rate hike expectations. The market's risk-off sentiment was attributed to the Nvidia issue, with Societe Generale strategist Kit Juckes noting that the central bank's actions were shaping expectations for another rate increase in December.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.