On Wednesday, the Stoxx 50 index in Europe fell 0.6% to close at 4,885, reflecting broader unease among investors due to political uncertainty. The pan-European Stoxx 600 also slipped 0.2% to 514. European markets were affected by fiscal concerns as the European Commission reprimanded several countries for exceeding budget deficits. British mining shares outperformed, supporting the Stoxx 600 amid mixed sectoral performances with losses in technology and healthcare. Trading was light in the absence of US participants as markets there were shut for a public holiday.

Summary for 20.06.2024

Asian equities hovered near a two-year high this morning as traders awaited US policy clues and central bank decisions from the UK, Switzerland, and Norway. Japan's Nikkei fell 0.63%, China's blue-chip index was down 0.34%, and Hong Kong's Hang Seng dipped 0.14%. Tech shares provided support, while China kept lending rates unchanged.

With concerns over geopolitical risks lingering, European equity futures are largely steady in early business today. Meantime, US equity futures were mixed, with tech shares showing potential to drive the market higher as investors await key economic data.

Oil price movements were mixed early Thursday as geopolitical tensions and inventory prospects influenced the market. Brent crude edged up due to escalating conflict in Gaza, which raised concerns over potential supply disruptions. Conversely, US crude dipped amid expectations of rising oil inventories, with trading activity subdued by the Juneteenth holiday.

In May, UK annual inflation decreased to 2%, meeting forecasts and returning to the Bank of England's 2% target. Key declines were seen in food costs, housing and utilities, and furniture, while prices rose slightly for transport. Core inflation also eased to 3.5%, reflecting broader price moderation across various sectors.

Dell Technologies and NVIDIA are partnering to build an AI Factory to enhance Grok, an AI model by Elon Musk's xAI. Grok, a multimodal AI chatbot, excels in real-world spatial understanding – its ability to comprehend and interpret physical spaces, objects, and relationships. The project includes Super Micro Computer and Oracle, aiming to create a supercomputer using 100,000 Nvidia GPUs by fall 2025.

Stifel analysts raised Nvidia's price target to $165 from $114, adjusted for a ten-for-one share split, foreseeing growth driven by high performance computing, cloud data centers, and accelerated compute. They highlighted risks like investment digestion periods and trade restrictions.

Umicore's Brussels-listed shares rose over 3r% yesterday after JPMorgan upgraded its rating to "Overweight," citing improved risk-reward dynamics through 2026. This followed Umicore slashing its 2024 profit forecast due to reduced orders from Chinese EV makers amid a broader slowdown in EV demand, impacting its battery materials supply.

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