European markets traded cautiously ahead of Nvidia’s quarterly results due after the U.S. close—Nvidia, which has surged roughly 1,000% since late 2022 and briefly topped $5 trillion in market value, is viewed as the main litmus test for AI-stock valuations and sentiment. Macro prints showed U.K. CPI eased to 3.6% in October (from 3.8%), increasing the odds of a Bank of England rate cut in December, while eurozone inflation decelerated to 2.1% y/y, supporting expectations the ECB will hold rates; these shifts could reprice rate-sensitive assets. On the corporate and commodity fronts, Smiths Group unveiled a new £1bn buyback after completing a £500m repurchase, Jet2 posted record interim passenger, revenue and profit metrics, Sage reported strong FY results emphasizing AI and cloud strategy, and oil prices slipped (Brent -2.7% to $63.15, WTI -2.9% to $58.94) after an API-reported U.S. crude inventory build of 4.45 million barrels, highlighting near-term supply pressure.
European equities traded cautiously as investors awaited Nvidia's quarterly results due after the close; NVDA has surged roughly 1,000% since late‑2022 and briefly exceeded a $5 trillion market value, making its outlook a pivotal test for AI‑stock valuations. Market moves were muted with the DAX up 0.1%, CAC 40 down 0.2% and FTSE 100 down 0.5%, reflecting risk‑on hesitation and a mixed, cautious sentiment that could flip sharply on Nvidia guidance. On the macro front, U.K. CPI fell to 3.6% in October from 3.8% in September, raising the odds of a Bank of England rate cut in December after a recent 5‑4 hold vote; the November 26 budget is an additional catalyst. Eurozone CPI eased to 2.1% year‑over‑year with a 0.2% month‑on‑month gain, consistent with expectations and implying the ECB is likely to keep policy on hold, a dynamic that will influence valuation multiples across rate‑sensitive sectors. At the company and commodity level, Smiths Group announced a new £1 billion buyback after completing a £500 million repurchase, Jet2 reported record interim passenger, revenue and profit metrics, and Sage posted strong FY results emphasizing AI and cloud strategy. Oil fell (Brent $63.15, -2.7%; WTI $58.94, -2.9%) after the API reported a 4.45 million‑barrel crude build and gasoline/distillate builds, with official U.S. inventory data pending; this adds a near‑term downside risk to energy prices and inflation expectations.
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mixed
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