US equities were higher on Monday as investors await the latest earnings report from Nvidia.
United States
Shares in Nvidia rose 2.49% on Monday and is set to report earnings after the close of trading on Wednesday. The tech giant is forecast to report earnings of $5.647 per share on an adjusted basis, while revenue is expected to come in at $24.692 billion for the first quarter. A key focus for investors will be guidance from CEO Jensen Huang regarding demand for chips which is at the heart of the artificial intelligence boom.
The S&P500 edged up 0.09% along with the Nasdaq Composite 0.65% and Russell 2000 0.32% while the Dow Jones retreated -0.49% after reaching a record high on Friday. Several Fed officials spoke on Monday, with comments broadly in line with recent remarks that the Fed is on a wait-and-see approach when it comes to interest rates.
Europe
European stocks remained around record highs on Monday, with little economic data to guide investors who remain focused on positive earnings results, and likely rate cuts in the coming months to support valuations. The Euro Stoxx 600 rose 0.18% along with the DAX 0.35%, CAC 0.35% and FTSE100 0.05%. A better-than-feared earnings season for Q1 as well as the likelihood of lower interest rates in the coming months have helped equities rebound in May after a soft April as a rally in equities paused. Morgan Stanley strategist increased their 12 month price target for European equities by 18% viewing the region as a sweet spot citing “improving macro indicators, rising corporate confidence, rebounding M&A, attractive capital distributions, and underappreciated AI diffusion”.
Australia
The ASX is expected to edge lower this morning with ASX200 futures down -11 points or -0.14% to 7,877. The index rose 0.63% on Monday driven by gains in materials 1.93% and financials 0.59% although stock performance was mixed with only 57% of companies higher. A jump in the price of gold helped miners rally, with Evolution Mining p 5.1% along with Gold Road Resources 6.1% and Regis Resources 5.9%. Shares in Star Entertainment jumped 20% after confirming a report from the AFR that Hard Rock Hotels and Casinos was considering taking control of the group. In focus for investors this morning is the latest consumer confidence report and policy minutes from the RBA.
Commodities
Oil prices start the week on a softer note with both WTI and Brent crude down -0.49% and -0.42% respectively. Iron ore futures in Singapore rose 0.93% on Monday and are a further 1.03% higher this morning, with copper also up 1.27%. Gold rose 0.48% overnight to US$2,426.74 an oz, silver rose 0.82% and Bitcoin is 5.14% higher at US$69,558.
Economic Calendar
Australian Consumer Confidence (MoM May) 10:30
RBA Policy Minutes 11:30
Treasury Secretary Yellen Speech 18:00
Canadian Inflation (YoY Apr) 22:30
This article was written by James Woods, Portfolio Manager, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3632.
