Stocks were mostly higher on Thursday as Wall Street rose on Nvidia's strong results and euro zone shares rose on news of strong business activity.
The Dow Jones Industrial Average fell, but the S&P 500 index and the tech-heavy Nasdaq rose. Nvidia said in after-hours trading Wednesday that demand for chips that power artificial intelligence in data centers led to a seven-fold increase in quarterly profit.
“The stock market has been waiting all week for NVIDIA's earnings report, and the report proved to be worth the wait — and a weighty one,” said Briefing.com analyst Patrick O'Hare. “NVIDIA once again wowed people with its results and outlook, delivering a prime surprise for shareholders when it announced a 1-for-10 stock split and a 150 percent increase in dividends.”
Nvidia, currently the third-largest company by market capitalization, rose 9.4% shortly after the market opened in New York. Food company Mondelez fell 1.1% after it was fined by the European Union for alleged anti-competitive conduct.
In Europe, stocks rose in Frankfurt and Paris after a major survey showed that euro zone business activity accelerated in May.
The HCOB Eurozone Purchasing Managers' Index (PMI) released by S&P Global was 52.3, up from 51.7 in April and the highest level in 12 months. A number above 50 indicates growth and a number below 50 indicates contraction.
The PMI increase was led by the services sector, where activity increased for the fourth consecutive month, supported by new business. Although the decline in the manufacturing sector slowed, it remained below 50.
“The PMI data further eased concerns about European growth, providing modest support to European stocks and the single currency,” said Fawad Razakzada, analyst at City Index.
London stocks were little changed, a day after stronger-than-expected annual British inflation data dampened hopes that the Bank of England would cut interest rates soon.
Traders largely ignored news on Wednesday that Britain's Conservative Chancellor Rishi Sunak had announced a general election would be held on July 4.
The right-wing Conservative Party, in power since 2010 but hit by disappointment over Brexit, discontent over the rising cost of living and a number of scandals, has consistently trailed the main opposition Labour party in opinion polls over the two years.
“Markets remain calm until the full Conservative and Labor election manifestos are released, albeit sooner than expected,” said Russ Mould, investment director at AJ Bell.
Asian markets diverged on Thursday after minutes from the US Federal Reserve's latest policy meeting indicated it intends to keep interest rates high for the time being as it struggles to bring inflation down to its 2% target.
“There was consensus that policy was 'appropriate' but many members were open to further rate hikes if necessary,” City Index's Razakzada said.
The news was quickly offset by better-than-expected UK inflation, as well as Nvidia's better-than-expected profits.
Elsewhere in the region, crude oil snapped a three-day losing streak while gold fell.
～Main figures around GMT1340～
New York – Dow: down 0.3% to 39,542.51
New York – S&P 500: up 0.4% to 5,328.69
New York-Nasdaq Composite: up 1.0% to 16,963.98
London – FTSE 100: Down less than 0.1% to 8,364.62 points
Paris – CAC 40: up 0.3% to 8,117.24
Frankfurt – DAX: up 0.2% to 18,710.09
Euro Stoxx 50: up 0.5% to 5,050.66
Tokyo – Nikkei Stock Average: Up 1.3% to 39,103.22 (closing price)
Hong Kong – Hang Seng Index: down 1.7% to 18,868.71 (close)
Shanghai – Overall: down 1.3% to 3,116.39 (close price)
New York – Dow Jones Industrial Average: down 0.5% to 39,671.04
Dollar/JPY: down to 156.70 yen from Wednesday's 156.75 yen
EUR/USD: Up from $1.0826 to $1.0859
Pound to dollar: up from $1.2717 to $1.2741
EUR/GBP: down from 85.10p to 85.22p
West Texas Intermediate: Up 1.1% to $78.44 a barrel
Brent crude: up 1.1% to $82.76 per barrel
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