European markets declined on Wednesday amid continued uncertainty surrounding technology stocks, as investors eagerly awaited the results announcement from Nvidia.
The pan-European STOXX 600 index fell 0.1% to 561.21 points, Germany’s DAX index held steady at 23192.27 points, Britain’s FTSE index remained unchanged at 9551.24 points, and France’s CAC index declined by about 0.4% to 7934.77 points.
Global markets have been tense this week due to concerns about AI-related technology stocks and a renewed debate about financial valuations.
In the US, stock futures were nearly flat overnight after major indexes extended their losses on Tuesday, driven again by pressure on technology stocks. Investors are now awaiting Nvidia's earnings report on Wednesday, after the US market closes, to gauge the strength of AI-related trading.
Analysts expect Nvidia to significantly exceed Wall Street's expectations, with strong sales growth driven by demand for AI chips and related infrastructure.
However, the company has to meet the high expectations of investors, who have taken profits from their tech holdings in recent days, reflecting growing concerns that the AI boom has inflated the valuations of Nvidia and other tech giants too much.
British inflation is declining
Data released Wednesday morning showed that the UK's annual inflation rate fell to 3.6% in October, increasing the likelihood of an interest rate cut by the Bank of England before Christmas. This figure, released a week before the anticipated autumn budget announcement, is in line with economists' expectations.
The price of the British pound remained stable against both the US dollar and the euro immediately after the data was released.
