By Pranav Kashyap
(Reuters) -European shares touched a more-than-one-month high on Wednesday, boosted by technology stocks ahead of Nvidia’s results later in the day and as Ageas’ better-than-expected results lifted insurance stocks.
The pan-European STOXX 600 index rose 0.2% to 520.09 points. It hit its highest level since July 15 earlier in the session.
Technology stocks were on investors’ radar, advancing 0.5% and was the biggest boost to the index. AI- darling Nvidia’s second-quarter results are due after U.S. trading hours.
Traders in the U.S. equity options market expect the earnings report to spark a more than $300 billion swing in the chipmaker’s shares. The sheer size and its position as an industry bellwether mean its earnings, can move the entire market.
The chipmaker’s sales likely doubled in the second quarter and even a slight miss might hurt sentiment.
Nvidia’s performance serves as a crucial indicator of market trends and can impact European companies, particularly those in the technology, automotive, and manufacturing sectors that rely on its semiconductors.
“There’s no way to calm investors ahead of Nvidia’s earnings because the expectations are just so lofty.. There’s bound to be surprises either way,” Thomas Gehlen, senior market strategist at SG Kleinwort Hambros said.
“It will cause short-term volatility,”.
On the data front, French consumer confidence for August was at 92, in line with estimates, helping lift the benchmark stock index up 0.3%. Unemployment data is due at 1000 GMT.
Consumer price reports from Germany and Spain are scheduled for Thursday, with a key inflation print for the Euro zone set to conclude the week.
The European Central Bank meets in two weeks to take a call on borrowing costs, and markets have fully priced in a 25-basis-point cut.
“It’s more difficult for the ECB than the Fed to get the policy decisions perfectly right because of the dispersion in growth between economies,” Gehlen added.
The insurance sector gained 0.7%, the most among sectors, lifted by Ageas’ 6.1% jump after the Belgium-based insurer’s half-year net operating results beat expectations.
Basic resources lost 0.8% after metals prices fell amid concerns about demand. [MET/L]
Among individual stock moves, Elekta jumped 9%, the most on the STOXX 600, after the Swedish radiation therapy equipment maker reported its first-quarter results.
LEG Immobilien lost 1.8% after the German real estate firm launched a 500 million euro convertible bond offering.
(Reporting by Pranav Kashyap in Bengaluru; Editing by Savio D’Souza and Eileen Soreng)
