The Albany Gazette - Stocks wobble ahead of central bank gathering

Investors were also basking in the glow of stellar earnings by Nvidia as a signal the boom in AI is continuing and could boost the wider tech sector.

Wall Street opened mixed after having finished higher on Wednesday as bond yields fell.

The fall in bond yields, along with the blockbuster Nvidia results after the close set the tone for trading in Asia, where Hong Kong led gainers by rising more than two percent.

The positive momentum initially carried through to Europe, but that had largely faded by the time Wall Street opened, with bond yields creeping back up.

Traders have spent most of August fretting that the Federal Reserve will be forced to raise interest rates further to contain inflation owing to a string of reports pointing to a resilient US economy and jobs market, while the Bank of England and ECB are also tipped to raise rates again.

Bond yields have risen in anticipation, increasing borrowing costs for companies and consumers, and stock prices have slid in consequence.

But surveys released Wednesday showed economic activity slowing in Europe and that growth had stalled in the United States prompted a drop in bond yields as hopes were raised this would allow monetary policymakers to hold off on further rate hikes.

"In terms of PMIs in the US and Europe, it's good news for the market because they are now expecting no more rate hikes in the future," Grace Tam, at BNP Paribas Wealth Management, said on Bloomberg Television.

On Thursday, US durable goods orders fell more than expected, but first-time claims for unemployment benefits came in lower than analysts forecasted.

"This morning's economic data may not offer much directional help," said Briefing.com analyst Patrick O'Hare.

The data comes as Fed chief Jerome Powell and European Central Bank head Christine Lagarde prepare to make speeches at a keenly followed annual gathering of central bankers and business leaders at Jackson Hole, Wyoming, on Friday.

Redmond Wong, at Saxo, said: "This may be another reason for Powell to stay away from committing to further rate hikes but continue to highlight a data-dependent approach."

- 'AI-craze' -

Sentiment was also boosted by the strong performance of Nvidia, whose products play a crucial role in artificial intelligence systems, crushed expectations on Wednesday, as the post-ChatGPT AI frenzy continues to lift the tech sector.

The Silicon Valley-based company said after markets closed on Wednesday that sales doubled year-on-year to $13.5 billion in the latest completed quarter, leaving a net profit of $6.2 billion -- an eye-watering 843 percent higher than a year before.

Signalling that the boom in AI is still going strong, Nvidia said revenue in the current quarter would ramp up further to $16 billion.

Nvidia's stock rose as much as 10 percent following the results in after-hours trading, and jumped 6.5 percent at the opening of trading. This year, the company's share price has more than tripled.

Swissquote Bank analyst Ipek Ozkardeskaya called the results stunning and said they would have "a boosting effect on technology stocks, if nothing by confirming that all the talk around the AI-craze was not empty, after all."

- Key figures around 1330 GMT -

New York - Dow: FLAT at 34,465.66 points

London - FTSE 100: UP 0.2 percent at 7,334.83

Frankfurt - DAX: DOWN 0.2 percent at 15,704.05

Paris - CAC 40: DOWN less than 0.1 percent at 7,242.70

EURO STOXX 50: DOWN 0.2 percent at 4,260.18

Tokyo - Nikkei 225: UP 0.9 percent at 32,287.21 (close)

Hong Kong - Hang Seng Index: UP 2.1 percent at 18,212.17 (close)

Shanghai - Composite: UP 0.1 percent at 3,082.24 (close)

Euro/dollar: DOWN at $1.0833 from $1.0868

Pound/dollar: DOWN at $1.2639 from $1.2727

Euro/pound: UP at 85.68 pence from 85.40 pence

Dollar/yen: UP at 145.82 from 144.80 yen on Wednesday

West Texas Intermediate: DOWN 1.1 percent at $78.03 per barrel

Brent North Sea crude: DOWN 1.0 percent at $82.36 per barrel

burs-rl/giv

(A.Berg--BBZ)