MORNING BID EUROPE-As stocks slump, cue Nvidia

Wed, 20th May 2026 08:41

(Corrects paragraph 10 to say BoE kept interest rates on hold at ⁠its last meeting) A look at the day ahead in European and global markets from Kevin Buckland

As if markets haven't been volatile enough, highly anticipated Nvidia earnings today could swing shares ‌of the world's most valuable company by $350 billion in either direction, based on options pricing. Analysts predict another blockbuster report from the ⁠chipmaker at the centre of the global AI frenzy, but a ⁠key question will be whether Nvidia can remain dominant amid an evolution in how semiconductors are used - from training AI systems to running them.

Traditional rivals Intel and AMD, as well as Google-owner Alphabet, are emerging as challengers in so-called inference chips. And Nvidia reports its first quarter at a ‌fragile time for markets: equities are being battered by a flare-up in inflation fears as the Iran war stokes higher oil prices, leading to worries about higher global interest rates and pushing bond yields worldwide to multi-year peaks.

Stocks are slumping around Asia and European equity futures are pointing lower, following declines for Wall Street overnight. President Donald Trump said on Tuesday that the U.S. may need to strike Iran again and that he had ‌been an hour away from ordering an attack before postponing it after receiving an Iranian peace proposal. The gears of geopolitics are in motion across the globe, ‌with Chinese President Xi Jinping hosting "old friend" Vladimir Putin, the Russian leader, less than a week after welcoming Trump, and Japanese Prime Minister Sanae Takaichi wrapping up a summit visit to Seoul on Wednesday. In Europe, Indian leader Narendra Modi is in Rome, and Hungary's Peter Magyar goes to Poland in his first official trip abroad as prime minister, as ‌he steers his country back toward the European mainstream. Bank of England policymakers, including Governor Andrew Bailey, speak to the Treasury Committee on topics such as the decision last month to keep rates on hold and the impact from ⁠the Iran war, ⁠with UK April CPI also due.

The U.S. Federal Reserve releases minutes ‌from April's meeting, when the board kept rates steady amid the biggest split since 1992, with one dissenter wanting a cut and - at the other end of the spectrum - three others pushing to excise dovish wording from the statement. Markets are ‌looking to incoming Fed Chair Kevin Warsh for guidance on the path forward for both monetary policy and central bank independence.

Key developments that could influence markets on Wednesday:

-Nvidia Q1 earnings

-Fed minutes

-UK CPI and PPI; Germany PPI; Euro area final HICP (all April)