- FTSE 100 stable after recent losses
- UK CPI up 3.6% in October in line with forecasts
- US futures flat
- NVIDIA Q3 results in focus
- Oil prices slip as inventories swell
Derren Nathan, head of equity research, Hargreaves Lansdown:
“After losing 3.5% in the last seven days the FTSE is showing some signs of life this morning with a small rise at the open. Corporate news is thin on the ground, but there were some solid first-half results from corporate real estate investor British Land, accompanied by encouraging comments about demand for new space.
UK inflation in October has stuck to the script, with annual CPI falling for the first time in five months to 3.6% after sticking at 3.8% for the previous three months. Food inflation however is proving particularly stubborn, accelerating to 4.9% from 4.5% in September. That comes as unwelcome news for those looking to stock up on festive goodies.
The headline numbers echoed consensus forecasts and provide a sliver of relief for the Chancellor ahead of next week’s Budget. The recent spike in bond yields reflects market concerns around the outlook for government financing, but at least today’s inflation print shouldn’t drive much change in the prospects for a December rate cut which currently stand at around 75%.
US futures are trading flat today after another wobbly session on Wall Street. DIY retailer Home Depot missed its quarterly numbers citing a benign hurricane season as one contributor. But consumer weakness and a slow housing market are longer term concerns. Chip stocks extended their declines with broader tech jitters exacerbated by internet disruption due to an outage at web security provider Cloudflare.
Today’s attention is focussed on NVIDIA’s Q3 numbers which come out after the bell. Market forecasts are looking for 57% revenue growth to $55 billion, and investors will be closely watching the fourth quarter guide after CEO Jensen Huang’s recent upbeat comments on order flow. Fourth quarter revenue forecasts currently stand at $61.7 billion which will be the number to beat.
Brent Crude oil prices are down slightly to around $64.5 per barrel. A 4.4-billion-barrel build in inventory last week (as reported by API) was the highest in five months and has done little to ease worries about a supply glut. Official numbers from the Energy Information Administration are due later today. Those looking for some support for prices will be hoping forthcoming US sanctions on the Russian oil majors will play their part.“
