FTSE 100, GBP/USD and gold slip ahead of Nvidia earnings
FTSE 100, GBP/USD and gold slip ahead of Nvidia earnings amid China AI boost and France’s political turmoil.
Market analysis
China's stock indices rallied after the State Council unveiled an “AI Plus” push late Tuesday to accelerate artificial-intelligence adoption across tech and consumer sectors, lifting artificial intelligence (AI), cloud and semiconductor names and sending the CSI300 to a three-year high.
Europe's higher open gave way to selling ahead of Nvidia’s after-hours earnings, seen as pivotal for near-term risk appetite.
Sentiment stayed brittle amid France’s latest political drama, after Prime Minister François Bayrou’s bid to win support for a debt-reduction plan appeared to backfire, following former PM Michel Barnier’s ouster in a late-2024 no-confidence vote.
Options markets imply roughly a $260bn swing in Nvidia’s value post-results, with China exposure - after an unusual profit-sharing deal with Washington - front and centre amid ongoing tariff talks and chip curbs.
FTSE 100 remains below record high
The FTSE 100 remains below last week's record high at 9,358 with further upside expected as long as the April-to-August uptrend line and Tuesday's low at 9,248-to-9,245 hold on a daily chart closing basis.
If not, the mid-August high at 9,228 is expected to be revisited. Together with the late July-to-early August highs at 9,189-to-9,174 it may offer support.
FTSE 100 daily candlestick chart
GBP/USD remains under pressure
GBP/USD's decline from its $1.3595 mid-August high has taken the cross to last week's low at $1.3391 from where it recovered, only to slide back again.
The August support line at $1.3442 and Tuesday's $1.3435 low currently act as support but if fallen through, the 11-to-22 August lows at $1.3399-to-$1.3391 may be revisited.
Minor resistance above the 55-day simple moving average (SMA) at $1.3490 comes in between the downtrend channel resistance line and last week's high at $1.3535-to-$1.3544.
GBP/USD daily candlestick chart
Gold price rally stalls
The price of gold is stalling at a two-week high at Tuesday's $3,393.74 peak above which still beckons the $3,409.43 8 August high.
Minor support below the 22 August high at $3,378.83 lies at the 14 August high at $3,374.80. Further minor support can be spotted at the 18 August high at $3,358.49.
While Tuesday's low at $3,351.33 holds on a daily chart closing basis, the short-term uptrend remains intact.
Gold daily candlestick chart
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