Headline: Risk Appetite Cools as Nvidia Takes Center Stage; Dollar Steady, Yields Ease
Early optimism faded across global markets as investors shifted from a risk-on open to a more cautious stance. With Nvidia’s upcoming earnings poised to dominate sentiment even ahead of the US September nonfarm payrolls report, equity futures pared gains while bond yields eased. Policy signals from the ECB and the Bank of Japan added nuance to the macro backdrop, as European equities slipped and forex moves stayed contained.
US equity futures trimmed early strength, with S&P 500 contracts up just 0.1% after touching 0.6% and Nasdaq futures adding 0.2%, down from nearly 1% earlier. The shift in tone followed reports that Peter Thiel’s Thiel Macro exited its Nvidia position during Q3, echoing a similar move by SoftBank and prompting fresh scrutiny of mega-cap tech leadership. In Europe, indices opened softer as investors weighed the week’s event risk and the countdown to the next Federal Reserve meeting. The ECB backdrop remained steady, with officials signaling confidence in disinflation toward the 2% target, while the European Commission projected faster euro area growth in 2025. Italy’s final October CPI held at 1.2% year over year.
In FX, the dollar was broadly stable. GBP outperformed while AUD lagged. EUR/USD edged toward 1.1600, and USD/JPY hovered just below 155 as attention turned to Tokyo politics, including a planned meeting between Prime Minister Takaichi and BOJ Governor Ueda. Japanese policymakers continued to stress that underlying inflation remains below target, with some advising against rate hikes until next year. EUR/CHF held above the 0.9200 area. In rates and commodities, US 10-year Treasury yields slipped 3.1 bps to 4.117%. Gold recovered from an earlier dip to trade near $4,083, oil eased with WTI around $59.98, and Bitcoin advanced 1.8% to roughly $95,438. Regional tensions between China and Japan lingered in the background.
Key Points: – Nvidia earnings overshadow the upcoming US September nonfarm payrolls, tempering early risk-on momentum. – S&P 500 futures +0.1% and Nasdaq futures +0.2% after larger early gains; European equities turn lower. – US 10-year Treasury yields fall 3.1 bps to 4.117%; gold steadies near $4,083 after an intraday dip. – Dollar holds firm: GBP leads, AUD lags; EUR/USD near 1.1600, USD/JPY just below 155. – ECB officials voice confidence on disinflation; Italy’s October CPI confirmed at 1.2% y/y; EU sees faster euro area growth in 2025. – BOJ remains cautious with inflation below target; Tokyo political calendar and policy guidance keep JPY in focus.
