European markets showed little movement on Thursday morning as the STOXX 600 hovered near record highs at 633.34 points.
Market participants are currently balancing a wave of corporate financial reports against the broader implications of Nvidia’s latest revenue forecasts. While the US chip giant’s strong outlook provided a backdrop of stability, its shares saw a relatively subdued 1.1% gain in Frankfurt, reflecting a cautious “wait-and-see” approach regarding the long-term profitability of massive AI investments.
The technology sector remained a focal point of volatility and mixed performance across the continent.
Schneider Electric saw its shares climb 3% following core earnings that exceeded expectations, fueled primarily by the surging demand for data center infrastructure.
Conversely, the Belgian chemicals firm Syensqo suffered a dramatic 22.6% collapse, leading to a temporary trading halt after the company failed to meet fourth-quarter earnings targets.
In London, the London Stock Exchange Group managed to defy broader market skepticism, gaining 3.6% after announcing a new share buyback program. This move comes as the group navigates pressure from activist investors and ongoing concerns that advancements in artificial intelligence could disrupt its traditional business model.
Overall, the day’s activity highlights a market increasingly sensitive to how individual companies are either capitalizing on or being threatened by the rapid evolution of AI.
On the FX front, the Japanese yen showed signs of recovery during Thursday’s Asian trading session, strengthening 0.3% against the US dollar to reach 155.87.
This rebound follows a period of notable weakness where the currency hit two-week lows, sparked by the Japanese government’s appointment of two pro-stimulus academics to the central bank’s board.
However, the yen managed to steady itself as subsequent comments from Bank of Japan officials provided much-needed support, helping the currency claw back some of its recent losses.
In the broader currency market, the US dollar index remained relatively flat at 97.585 as traders navigated a landscape of political and legal uncertainty. Markets are closely watching for President Donald Trump’s response to a recent Supreme Court ruling that struck down his emergency tariffs, a move that has kept the greenback’s momentum in check.
Despite the dollar’s general stability, it slipped 0.3% against the offshore Chinese yuan, which hit a three-year high of 6.8324. This surge in the yuan persists due to seasonal settlement demand, even as China’s central bank signals a desire to moderate the currency’s rapid appreciation.
European and Antipodean currencies experienced a day of range-bound trading with minimal volatility.
The euro saw a marginal gain of 0.1% to reach $1.1817, while the British pound held steady at $1.3555.
Similarly, the Australian dollar remained unchanged at $0.7126. The New Zealand dollar provided a brief moment of drama by dipping below the $0.60 threshold before staging a recovery to finish flat at $0.6003.
The digital asset market faced a more difficult session, characterized by a general downward trend in major cryptocurrencies.
Bitcoin retreated 0.7%, trading at $68,478.38, while Ether saw a more significant decline, tumbling 2.0% to settle at $2,059.01.
This cooling off in the crypto space stands in contrast to the relatively stable, albeit cautious, environment seen in traditional fiat currency markets.
Currency Power Balance
