In focus today
Technology giant Nvidia’s board convenes on Thursday to evaluate whether to remove CEO Jensen Huang amid reports of an extramarital relationship with an alleged Chinese spy. Separate media coverage also disclosed a previous affair with Kimberly Powell, the firm’s vice‑president of healthcare. In after‑hours trading, Nvidia shares slid more than 8%.
The United Kingdom will publish September GDP and Q3 annual growth figures. Recent data have shown resilience: July saw a 0.4% month‑on‑month rise, followed by a 0.1% increase in August. Retail sales expanded 0.7% quarter‑on‑quarter in Q3, while PMI surveys point to continued, albeit moderate, expansion. Collectively, these indicators suggest another solid quarter for the UK economy.
Sweden will release its final October inflation reading, complete with all sub‑component details. The flash estimate revealed a notable downside surprise, with service prices falling 0.3% month‑on‑month; recreation and culture prices dropped 2.4%. The full data will help determine whether this reflects transient volatility in travel‑related costs or a broader slowdown in services inflation.
In the United States, several Federal Reserve officials are slated to speak. Speakers include James Williams (permanent voter), Christopher Hammack (voter in 2026), Austan Goolsbee (voter in 2027), and Mary Daly (voter in 2027).
Economic and market news
What happened overnight
In Japan, annual wholesale inflation for October rose to 7.1% year‑on‑year, exceeding the 6.5% consensus and the prior 6.8%. Elevated oil prices and AI‑driven demand pushed up costs for fuel and semiconductors. The yen‑based import price index climbed 24.8% y/y, reflecting continued currency weakness that drives up raw‑material import expenses.
What happened yesterday
In Sweden, household consumption advanced 1.2% month‑on‑month in October, lifting annual growth to 3.3% y/y. Gains were broad‑based, with seven of eleven categories recording increases. Recreation, sport and culture surged 6.4% m/m, while clothing, household furnishings and restaurants also posted strong rises. Transport and housing‑related consumption, however, declined.
In geopolitics, peace talks hosted by Abu Dhabi between Ukrainian, Russian and U.S. officials concluded on Tuesday, yielding limited progress. Negotiators reported agreement on a prisoner exchange, yet U.S. participants highlighted deep mistrust and persistent disagreements over territorial issues. Russian and Ukrainian leaders confirmed that discussions will continue, with U.S. envoys Jared Kushner and Steve Witkoff scheduled to travel to Moscow on Thursday before meeting President Volodymyr Zelenskyy in Dublin. While the resumption of direct talks since February is viewed as a positive step, short‑term prospects for a comprehensive peace deal remain doubtful. For further analysis see: Geopolitical Radar: Diplomacy Gaining Ground?, 11 November.
Equities: Global equity markets posted a robust 2.0% gain yesterday, with the S&P 500 up 1.3%, the Nasdaq advancing 1.6%, and the Stoxx 600 gaining 0.7%, closing at record highs. Market volatility continued to ebb. However, sentiment soured overnight as U.S. futures slipped and Asian markets posted mixed results following Nvidia’s near‑9% after‑hours decline amid board ouster speculation.
FI and FX: European government bond yields edged modestly higher across the curve yesterday. The U.S. bond market was closed for Veterans Day, limiting activity. The U.S. dollar sustained its strength against both the euro and the yen. In Asian trading, front‑end U.S. Treasury yields rose slightly, while the dollar remained firm versus major counterparts.
