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US Futures Rebound, Asian Markets Fall, Europe Attempts Rise

Korea Economic Daily

Summary

US markets showed futures index rebound after weekend decline, with investors particularly focused on NVIDIA's upcoming earnings report.
Asian markets declined as US-China trade tensions intensified, with the MSCI Asia Pacific index falling 0.3%.
European stock markets attempted to rise following announcements of swift government formation after German election victory.

NVIDIA Shows Positive Momentum Ahead of February 26 Earnings

Asian Markets Fall on US-China Trade Tension Escalation

US stock index futures rebounded on February 24 (local time) after falling over the weekend due to economic data showing service sector contraction and consumer inflation concerns. NVIDIA is scheduled to report earnings this Wednesday, February 26.

Asian markets declined as the MSCI Asia Pacific index fell 0.3% after Chinese markets dropped following reports that Trump is accelerating trade pressure on China. European stocks saw the Stoxx 600 rise initially after Germany's conservative leader, who won the general election, announced plans to swiftly form a government.

S&P 500 and Nasdaq futures both rose 0.5%. Nasdaq fell 2.5% last week, marking its worst weekly decline in three months, led by drops in Magnificent 7 stocks.

The Bloomberg Dollar Spot Index fell 0.1%, while the 10-year US Treasury yield remained steady at 4.43%.

Brent crude traded up 0.1% at $74.34 per barrel. Spot gold rose 0.4% to $2,947.08 per troy ounce.

Bitcoin remained steady at $95,707.95.

NVIDIA, which has influenced global markets during earnings seasons for over six quarters, will report earnings on February 26. Wall Street analysts expect NVIDIA's Q4 revenue to be around $38.5 billion (55 trillion won) and Q1 forecast at approximately $42.5 billion (61 trillion won).

Options markets indicate, as usual, that the stock could move about 8% in either direction if results deviate from expectations.

The Personal Consumption Expenditures (PCE) index, the Federal Reserve's preferred inflation measure, will be released on February 28. Economists expect a slowdown from 2.8% to 2.6%, though tariff concerns could limit the decline.

According to Friday's US consumer survey, inflation expectations for the next 5-10 years surged to 3.5%, the highest since 1995.

In Asian markets, with Japan closed for a holiday, the MSCI Asia index fell 0.5%. China's mainland blue-chip CSI300 index dropped 0.26%, and Hong Kong's Hang Seng index declined 0.34%.

By Jung-ah Kim, Contributing Writer kja@hankyung.com

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