Global shares edged up yesterday to within a fraction of a fresh record high, and were set for a monthly gain, even as geopolitical tensions and concerns about AI lingered.
Manish Kabra, head of US equity strategy at SocGen, said that in the absence of any major news, the market was refocusing on fundamentals, which he described as “rock solid”.
“This is on a global basis. When I say fundamental, this is the profit cycle, the growth cycle, the broadening of the growth,” said Kabra.
Global shares rose 0.1 per cent, as did Europe’s STOXX 600, buoyed by some generally positive earnings. Nevertheless, jitters around AI spending and fears about the technology’s broader business disruptions, as well as US-Iran tensions, have weighed on sentiment this week.
US stock market futures were flashing red around midday in London, with S&P futures and the tech-heavy Nasdaq futures both down 0.5pc.
Tech shares fell on Thursday even as Nvidia posted better-than-expected results for the January quarter and forecast current-quarter revenue above market estimates.
“It seems ‘the Street’ simply wanted more, or perhaps just isn’t prepared to chase the stock at its current lofty valuation,” IG market analyst Tony Sycamore said about Nvidia’s results. Shares in Nvidia ended down over 5pc on Thursday.
Markets were also watching developments in US-Iran nuclear talks, as Washington amassed more military resources in the Middle East.
An Omani mediator gave an optimistic summary of the latest negotiations, but signs of a breakthrough that could avert potential US strikes remained elusive. “With no major breakthroughs announced in the US-Iran talks, crude markets remained in wait-and-see mode, continuing to price in a significant risk of military escalation between the two countries,” said Mantas Vanagas, senior economist at Westpac Group.
US crude rose 2.4pc to $66.77 a barrel, and Brent rose to $72.24, up 2.1pc. Spot gold shed 0.1pc to $5,180.29 an ounce.
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