Global equity markets remained subdued on Monday as investors balanced geopolitical risks, upcoming U.S. economic data and the highly anticipated quarterly results from Nvidia.
The Swiss Market Index (SMI) fell 0.15%, while Germany’s DAX and Europe’s Euro Stoxx 50 were little changed at 26,138 and 6,461 points, respectively. U.S. stock index futures pointed lower ahead of the session. Concerns over trade tensions between the U.S. and Canada, following the collapse of a bilateral trade deal and subsequent U.S. tariffs, weighed on sentiment. Canada has signaled retaliatory measures, while investors are awaiting a press conference by U.S. Treasury Secretary Scott Bessent on Thursday’s planned sanctions against Iran. The prospect of escalating U.S.-Iran tensions has pushed oil prices down by roughly 2%.
The decline in oil weighed on energy shares, with RWE’s stock falling about 1% in Frankfurt. Meanwhile, chip-related equities came under pressure as investors positioned ahead of Nvidia’s quarterly earnings report due on Wednesday. Shares of Infineon and Aixtron each dropped around 1%, reflecting broader caution ahead of the AI chip giant’s results, which are widely seen as a bellwether for demand in the artificial intelligence sector.
«Most of Nvidia’s customers have already reported earnings, and all signs point to another exceptional quarter,» said Jochen Stanzl, chief analyst at Consorsbank. «The question is not whether Nvidia will deliver, but how the increasingly demanding market will react to the results.»
Investors are also focused on U.S. personal consumption expenditures (PCE) data due on Wednesday and the Federal Reserve’s annual Jackson Hole symposium starting Thursday, which could provide further clues on interest rate policy. «Every word will be scrutinized, as elevated bond yields remain a key concern for the weeks ahead,» said Jürgen Molnar, strategist at RoboMarkets. Rising borrowing costs have tightened fiscal space for governments and increased the attractiveness of bonds as an alternative to equities.
Bond markets saw modest inflows, pushing yields slightly lower. The yield on Germany’s 10-year Bunds eased to 3.253%, still near a 15-year high of 3.275% reached last Thursday. Gold prices, however, climbed to their highest level in over three months, with spot prices rising 1% to around $4,649 per troy ounce. A weaker U.S. dollar supported the move, making the dollar-denominated metal cheaper for non-U.S. investors. Gold has gained more than 5% over the past week, extending its upward momentum.
«The stabilization of gold above $4,600 and the potential for further gains hinge largely on whether the U.S. dollar remains under pressure and whether government bond yields stabilize or decline further,» said Ricardo Evangelista, analyst at ActivTrades.
