European stocks hit record high after Nvidia storm rattles Asia

Résumé détaillé

Asian markets suffered falls overnight after reports that Nvidia's board had met to decide the fate of long-time leader Jensen Huang sent the company's shares diving nearly 7% in premarket US trading

Fresh turbulence hit global stocks on Thursday as a spy scandal threatened to oust chip giant Nvidia’s CEO, while US Treasury yields touched 5% again and the dollar reached a 19-month high on firming US rate rise bets.

There was early cheer for Europe where the comparatively tech-light STOXX 600 hit its first record high since August, but elsewhere the strains were showing.

Asian markets suffered falls overnight after reports that Nvidia's board had met to decide the fate of long-time leader Jensen Huang sent the company's shares diving nearly 7% in premarket US trading.

Chinese tech firms that use Nvidia chips for their AI models fell heavily in Hong Kong. Alibaba and Tencent tumbled 6.7% and 2.6% respectively amid concerns that Washington may now curb access to offshore datacentres with the most advanced processors.

Brent oil had bounced back above $92 a barrel as persistent tensions in the Middle East offset rising regional output, while the dollar was at its highest since last April in the aftermath of US President Donald Trump's 'Liberation Day' tariff announcements.

The US currency has gained almost 1.5% since hot inflation data earlier this week triggered a repricing of expectations for another Federal Reserve rate hike next month.

A week ago, traders saw a one-in-three chance that the US central bank would hold steady. Now they price a 90% chance of a 25-basis-point hike, and ascribe 9.2% odds of a larger 50-basis-point hike, according to the CME Group's FedWatch tool.

"The Nvidia issue has played its part in creating a risk-off move that is pushing up the dollar," Societe Generale strategist Kit Juckes said.

"The deep driver though is the big shift in the tone around inflation ... The market is now off the fence on the question of whether there is an inflation problem."

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