European shares edged higher on Wednesday as falling oil prices pushed bond yields lower, while investors looked ahead to Nvidia’s quarterly earnings and fresh U.S. inflation data for clues on the outlook for markets and interest rates.The pan-European STOXX 600 index was up 0.1% at 657.34 as of 0703 GMT, with basic resources leading sectoral gains, rising 0.9%. The energy sector, however, declined 1.1% and was the weakest performer on the index.Oil prices extended their recent decline as expectations grew that the Strait of Hormuz could reopen, potentially allowing crude supplies to increase. Brent crude futures fell for a third straight session, dropping more than 2% to around $86 a barrel.Reuters reported that Iran had resumed talks with Oman over the management of the Strait of Hormuz, amid increasing pressure from U.S. President Donald Trump. The nearly six-month conflict has disrupted oil markets and heightened concerns over global inflation.The decline in crude prices helped push bond yields lower, easing some pressure on equity markets. Investors are also closely watching developments around the Strait, a crucial route for global energy shipments, for signs that supply disruptions could ease.Attention is now turning to Nvidia’s second-quarter results, due later on Wednesday. The artificial intelligence chipmaker has become a key gauge of the sustainability of the AI investment boom, with investors looking for evidence that strong spending on AI infrastructure can continue to support elevated market valuations.Technology stocks slipped 0.2% ahead of the results, reflecting some caution before Nvidia’s report.Markets are also awaiting a key U.S. inflation report later on Wednesday. According to Reuters, investors are looking for fresh signals on price pressures and the likely path of Federal Reserve interest rates, making the data an important factor for both bond and equity markets.(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of The Economic Times.)
Global Market: European shares edge higher as oil prices fall, Nvidia earnings in focus
European shares edged higher as falling oil prices eased bond yields and supported equities, while investors awaited Nvidias quarterly results and fresh US inflation data. The STOXX 600 gained 0.1%, with basic resources leading gains, even as energy stocks lagged amid hopes of a reopening of the Strait of Hormuz.
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