Global Markets Brace for Upswing Amid Rate Cut Hopes and Nvidia’s China Outlook

Market Sentiment and Stock Futures - US stock futures advanced, indicating a stronger open for Asian markets, driven by optimism for Federal Reserve interest rate cuts and positive news from Nvidia [2][8] - S&P 500 E-mini futures rose by 0.7% and Nasdaq 100 E-mini futures jumped by 1.2% [2] Nvidia Developments - Nvidia received assurances from the US government to resume shipments of its lower-end H20 AI accelerator chips to China, alleviating earlier inventory concerns [3] - CEO Jensen Huang highlighted robust demand for Blackwell chips, describing it as "off the charts," indicating strong demand for AI infrastructure [3] Federal Reserve Rate-Cut Optimism - Markets are increasingly pricing in a near-term reduction in interest rates by the Federal Reserve, with a 74% chance of a rate cut at the next meeting [5][8] - New York Fed President John Williams suggested room for a rate cut without jeopardizing inflation goals, while Dallas Fed President Lorie Logan advocated for maintaining the current policy rate [4][6] Gold Market Dynamics - Gold prices are holding firm, with December delivery futures settling 0.5% higher at $4,079.5 per ounce, reflecting traders' expectations of a near-term Fed rate cut [5][6] - The mixed signals from US labor data, including rising jobless claims and a four-year high unemployment rate, contribute to gold's appeal as a non-yielding asset [6] UK Nuclear Energy Challenges - The UK is identified as the costliest country to build new nuclear power plants, ranking 15th out of 16 countries in construction cost per megawatt hour [7][9] - The Hinkley Point C project is projected to cost £33 billion, potentially increasing to £46 billion ($59 billion), with completion delays expected beyond 2029 [9] Oil Market Trends - Oil prices are declining as traders assess the potential for a peace deal between Ukraine and Russia, which could increase global oil supply [10][11] - Brent crude recently fell 0.4% to $68.93 a barrel, reflecting market concerns over the evolving geopolitical situation [10]