Key economic data and Nvidia earnings will shape global market trends this week
This week, global markets will focus on key economic data and corporate earnings that could provide important direction for market trends. Investors will pay close attention to flash manufacturing and services PMI (Purchasing Managers Index) data from major economies including the Eurozone, UK and US. Additionally, artificial intelligence powerhouse, Nvidia, is set to report its quarterly earnings, which will provide insight into the growth trajectory of the tech sector.
In the markets, attention will also be paid to the strength of the US dollar and how it affects commodity prices and other currencies in the G10 group and emerging markets. Fed Chairman Jerome Powell’s tough stance on interest rates could strengthen the dollar, putting pressure on the euro and European equity markets.
Europe
S&P Global is set to release flash PMI data for major European economies including Germany and France. In the Eurozone, the manufacturing PMI was revised down to 46 in October from 45 the previous month, indicating a slowing of the contraction in the region. However, this reading represents the 28th consecutive month of contraction, the longest decline in history, with any PMI reading below 50 indicating contraction.
In Germany, the PMI improved to 43 from a 12-month low of 40.6 in October, suggesting the economy has hit a trough. In France, manufacturing activity declined for the 21st consecutive month, hitting 44.5 in October, likely due to weak foreign demand amid geopolitical tensions affecting purchasing power. The consensus expectation is that the manufacturing sector will see a slight improvement in November, with Germany’s PMI rising to 43.1 and France’s to 44.6.
In the services sector, Eurozone activity continued to expand for the ninth consecutive month, albeit at a slower pace, printing 51.6 in October. In Germany, services activity expanded for the seventh consecutive month, registering 51.6, the first increase in five months. In France, the services PMI printed at 49.2, marking a contraction for the second consecutive month, with foreign orders falling sharply due to weak demand since March.
Germany’s services PMI is expected to rise slightly to 51.8, while France may see further contraction with an expected reading of 49.0. Eurozone data is expected to remain unchanged at 51.6.
In the UK, the manufacturing PMI fell into contraction territory, revised down to 49.9 in October due to caution ahead of the budget. Services activity continued to expand, albeit at a slower pace, with a reading of 52.0 in October, down from 52.4 the previous month. The consensus expectation is that the manufacturing PMI will return to expansion at 50.1 and the services PMI will improve slightly to 52.3.
Additionally, the UK will release CPI data for October, with expectations that headline inflation may rise to 2.2% from 1.7% last month, mirroring trends seen in the Eurozone and the US.
United States of America
Nvidia is set to unveil its third-quarter earnings for fiscal year 2025 on Wednesday, November 20. As one of the biggest beneficiaries of the artificial intelligence boom, Nvidia is expected to report revenue of $32.81 billion and earnings per share of $0.74 (€). 0.70), representing year-on-year increases of 85% and 81.1%, respectively.
After joining the Dow Jones Industrial Average, Nvidia has overtaken Apple to become the world’s most valuable company by market capitalization. Its earnings report will be a leading indicator of the health of the technology sector in global markets.
On the economic front, S&P Global will also release manufacturing and services PMI data for the US in November. In October, manufacturing activity contracted for the fourth consecutive month, while services PMI continued to expand. The decline in new orders was likely due to uncertainties surrounding the US elections, along with a decline in the manufacturing sector. November data is expected to reflect similar patterns.
Asia Pacific
In the Asia-Pacific region, the People’s Bank of China (PBOC) will decide on its 1-year and 5-year loan prime rates (LPR), which serve as key lending rates for corporate and mortgage loans. In October, the bank cut both rates by 25 basis points as part of its stimulus measures. However, the bank is expected to keep rates unchanged this month, as chances of further rate cuts are slim.
The Reserve Bank of Australia (RBA) will release its minutes from the November policy meeting. The bank kept its policy rate at a 12-year high of 4.35% and indicated that despite the decline in inflation, its monetary policy would remain accommodative for some time. The market expects the RBA to start cutting rates in May 2025, unlike other major central banks that have implemented rate cuts multiple times this year.
Economic data and Nvidia earnings this week will provide important insights into the direction of global markets with implications for currency strength, commodity prices and economic growth in regions.
