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.
