The feeling of risk is optimistic on Thursday, with the exception of Brazilian marketsthe main stock market indices in Europe are upwards, the dollar is down and bond markets are calm, with the United Kingdom gilts surpassing. The FTSE 100 reached a new historical maximum and is now above 16% since the minimum of April. Futures of US stock indexes are slightly down on Thursday, but have recovered from their minimums as the feeling of risk gains impulse.
The FTSE 100 shoots at historical maximums, while the tariff threats are ignored
The FTSE 100 is being upward by the miners, and the material sector is above 3% on Thursday. Health actions are also strong throughout Europe. This may sound contradictory, President Trump has just announced tariffs on copper and is threatening with a 200% tax on pharmaceutical imports, so why are these sectors uploading? The reason is that there have been very few concrete details about how tariffs will be applied, so we are seeing these sectors to steal prominence: investors expect Trump to go back. Thus, after strong falls for Brazilian actions on Wednesday, they could also recover later today.
Currency market: the dollar weakens as the tariff threat is reduced
A similar topic can be seen in the currency space. The South African and the Korean Won are the best performers in the emerging market currency space on Thursday, recovering losses from the beginning of this week after President Trump announced tariffs on South Africa and South Korea. Thus, we could see the Real Brazilian also recover some of the losses of Wednesday later today.
The deadline for the reciprocal tariffs of President Trump arrived and left, now the approach has moved back to the actions of AI and technology. Nvidia triggered a new historical maximum on Wednesday, and its market capitalization reached 4 billion dollars in a moment, being the first company in the world to do so. Of course, AI is a massive issue, but is it worth Nvidia, a chips manufacturer, really more than all the market capitalization of the FTSE 100 and the German Dax?
Nvidia: The good news continues to come
Nvidia does not report profits until the end of August, but the market has updated its profit estimates for the company for the second quarter. Analysts now expect income of 45.5 billion dollars for the last quarter, compared to 44,060 million dollars in the first three months of the year. There were a couple of drivers for the return of Nvidia to the territory of historical maximums on Wednesday: Meta continues to spend a lot on their AI infrastructure, which means more sales for Nvidia of one of its largest customers. In addition, the Nvidia CEO is directed to China this week to launch a new chip of the Chinese market. This chip would have to overcome US export controls for technology, however, it could be an important new source of income for NVIDIA if the launch is successful. Reports in the United Kingdom press suggest that the chip could come into operation in September, which could lead to a series of profit updates for later this year and until 2026, which is also good news for the price of shares.
Growth actions such as NVIDIA and other technological actions are the biggest factor that drives US indexes this week. Profit reviews as we approach the profit season of the second quarter and impulse are also powerful drivers. This is helping to maintain the main stock market indices of the US and near historical maximums, so we hope that any weakness in US rates on Thursday is mild.
FOMC minutes fail to move the expectations of rates cuts
The Fed minutes last night have slightly weighed on the feeling towards US actions as we move towards Thursday, and the futures of the US stock market rates point to a slightly downward opening. We will be attentive to see if Nvidia can continue to extend your profits after having uploaded more than 13% in the last month. Fed minutes suggest that there is a division in the Federal Reserve, with some members concerned about the impact of tariffs on inflation, and others less concerned about possible risks for the CPI. The Fed funds market is still waiting for 2 rates cuts for the end of the year, and expectations for interest rates at the end of this year remain little changed at 3.79%.
Today, the approach will be in the initial unemployment applications in the US and if they will follow a downward trend as they did last week, and any news about a commercial agreement between the EU and the US.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
