London, UK – European stocks experienced a volatile start to trading on Thursday amidst a wave of earnings reports, leading to mixed results on major bourses. The Stoxx 600 index initially saw gains before slipping 0.14% by 8:56 a.m. in London. The FTSE 100 in the UK rose by 0.45%, while the CAC 40 in France fell by 0.8% and Germany’s DAX was down 0.1%.
On the other hand, SK Hynix, a major supplier to Nvidia, announced that its high-bandwidth memory chips are nearly sold out for 2025, driven by increased demand in the AI sector. The South Korean firm reported that its HBM chips for 2024 were fully booked and is set to begin mass production of the latest HBM3E chips in the coming months.
In Singapore, DBS Group revealed a 15% surge in first-quarter net profit from the previous year, reaching a record S$2.96 billion. The bank’s CEO, Piyush Gupta, expressed optimism for better-than-expected total income and earnings for the year, following a strong performance in 2023 that saw record profits of S$10.3 billion.
Meanwhile, Chinese electric vehicle maker Nio Inc saw a 20% surge in its Hong Kong-listed shares after reporting a 134.6% year-over-year increase in deliveries for April, totaling 15,620 vehicles. The company highlighted the strong demand for its premium electric SUVs and sedans, with total deliveries for the year showing a 21.2% increase compared to the same period last year.
In Japan, the yen strengthened to 155 against the U.S. dollar, marking its highest level in 11 days. The currency’s rise came after Japanese authorities intervened to support it following a recent decline to fresh 34-year lows. On the stock market front, the Nikkei 225 was down 0.3% for the day.
Investment guru Jeffrey Gundlach of DoubleLine Capital predicted only one rate cut by the Federal Reserve in 2024, emphasizing the importance of addressing inflation concerns. The Fed recently indicated a cautious approach to rate hikes, with Chair Jerome Powell suggesting that the next move is more likely to be a cut than an increase.
As the trading week progressed, major U.S. stock indexes were on track to end with losses, with the S&P 500 and Nasdaq Composite down by over 1% and around 2%, respectively. The Dow, which had shown some gains on Wednesday, was set for a 0.9% decline.
In the after-hours market activity, stocks of companies like DoorDash, Carvana, and eBay made significant moves, with DoorDash experiencing a 13% drop due to a wider-than-expected loss in its first-quarter report. Carvana, on the other hand, saw a 30% surge after surpassing revenue forecasts for the quarter. eBay faced a 4% decline after missing expectations with its current-quarter revenue guidance.
Furthermore, stock futures showed a positive trend with gains shortly after 6 p.m. ET, as futures tied to the Dow and S&P 500 each increased by 0.2%, while Nasdaq 100 futures climbed by 0.3%. These developments indicate a potential rebound in the stock market following a week of mixed performance.
