- European markets declined 0.3-0.9% while Asian indexes showed mixed performance
- Nvidia reports 214% quarterly revenue growth amid rising AI chip competition
- U.S. Q4 GDP revision and PCE inflation data imminent
- Shanghai Composite bucks regional trend with 0.2% gain
- Brent crude oil prices drop 2.1% to $72.45/barrel
Global financial markets exhibited cautious trading patterns Thursday as investors weighed competing economic signals. Germany’s DAX fell nearly 1% while France’s CAC 40 dipped 0.3%, reflecting European concerns about potential interest rate adjustments. Across Asia, Tokyo’s Nikkei 225 edged up 0.3% despite tech sector volatility, while South Korea’s Kospi dropped 0.7% amid export concerns.
The artificial intelligence sector remains a critical market driver as Nvidia’s Blackwell chips face their first major test against Chinese competitor DeepSeek. Industry analysts note that DeepSeek’s claims about efficient AI processing could reduce demand for premium chips by 18-22% in emerging markets. This development comes as Microsoft and Google reaffirm commitments to invest $40 billion combined in AI infrastructure through 2025.
Thailand’s SET index plunged 1.3% Thursday, illustrating regional disparities. Local analysts attribute this to reduced tourism revenue projections and semiconductor supply chain disruptions. Meanwhile, Shanghai’s 0.2% gain suggests cautious optimism about China’s stimulus measures targeting tech manufacturing.
Energy markets showed split trajectories with U.S. crude rising 0.5% while Brent crude fell sharply. This volatility precedes Friday’s crucial PCE inflation report, which economists predict will show a 0.3% monthly increase. Federal Reserve officials have emphasized data-dependent approaches, creating uncertainty about June rate cut possibilities.
Consumer spending concerns persist as retail giants report 4.2% higher credit card delinquencies year-over-year. However, U.S. GDP projections suggest stable 2.8% annualized growth for Q4 2024. Market strategists warn that sustained inflation above 3% could trigger sector-wide corrections, particularly in overvalued tech stocks.
