Stock markets in the UK, Europe and Asia fell on Wednesday. NVDA It has been proven to be contagious.
The Stoxx Europe 600 index fell by about 1% in the fall Wednesday morning as investors responded negatively to news that Nvidia’s export restrictions could cost as much as $5.5 billion. The company’s shares fell on Tuesday in post-US market trading. Negative emotions have proven contagious for Dutch semiconductor device company ASML ASMLthe stock fell more than 6%.
The S&P 500 futures pointed to a widespread neutral opening in the US, but contracts for the tech-heavy Nasdaq-100 index fell by more than 1%.
“Today there is a new focus on trade tensions and tariff outcomes on the supply chain and company revenue,” said Nicolo Bragazza, Associate Portfolio Manager at Morningstar Investment Management.
“In addition, according to a White House statement, tariffs on China are currently at 245%. These fears are also being revitalized by companies that mention ASML’s online booking mistakes and increasing uncertainty regarding tariffs and the broader macroeconomic landscape.”
In the UK, the FTSE 100 index surpassed broader European stocks after inflation fell to win market consensus. According to the National Bureau of Statistics, the UK’s consumer price index rose 2.6% in the 12 months ended March 2025. This was lower than the 2.8% recorded in February, below the market consensus of a 2.7% upward trend.
Despite the good news, the FTSE 100 quickly fell -0.16% in OPEN, falling -0.66% at 9am, led by Distribution Company Bunzl. Bnzlthe stock plummeted -23.46% with a full-year profit warning. Asset Manager Intermediate Capital Group ICGTechnology Product Provider Diploma Group DPLM and business information and event company Informa Inf All of them decreased by -3.25%, -3.08% and -2.66% respectively.
At FTSE 250, stocks continued to fall to 0.41%, falling to 0.81% as Oxford Nanopore Technologies continued trading. OntXPS Pension Group XPSand diversified energy companies Decemberfell -4.24%, -3.31%, and -3.00% respectively.
In the currency market, the US dollar continued to decline against the euro, down 0.82% over the past 12 hours. The dollar is currently trading at 0.87911 euros. The US Treasury bill yields in 2010 were almost stable.
“Despite the sale of the dollar and renewed risk aversion, so far, the US Treasury bond market has traded as expected to have a low yield, but the 30-year yield still suggests a vulnerable sentiment.”
“Efforts have been made to strengthen confidence in the bond market. A comment from US Treasury Secretary Scott Bescent yesterday may have helped.
“Bessent said the Treasury has a “big toolkit” that can be deployed. For example, we purchased less aged liquids and purchased from bonds, such as restarting the backback program, improving liquidity and market production situations. ”
Estimates of Fair Value of Nvidia Stocks
In the wake of the latest news about Nvidia, Morningstar analysts have reduced their fair value estimates for the company’s stock from $130 to $125, marking China’s revenues significantly decline.
“China has shrunk from 20% to about 10% of Nvidia’s revenues. It is now expected to approach zero and we don’t foresee a turnaround anytime soon,” says Morningstar equity strategist Brian Collero.
“While tariffs and geopolitical tensions remain short-term and long-term concerns for Nvidia and other ship manufacturers, the future of AI expansion is also unclear. These factors underpin a very high uncertainty assessment.”
What could happen next?
Updated sale and fresh inflation data on Wednesday put updated pressure on the central bank, particularly for the Bank of England.
“There remains further inflation concerns due to the impact of President Trump’s tariffs,” said Nathaniel Casey, investment strategist at Evelyn Partners.
“If these last at a 10% rate, this could put upward pressure on inflation. However, recent US growth concerns have put even more downward pressure on oil prices, which could continue to add downward pressures than the coming print, reducing the impact seen from tariffs.
“While the BOE has not yet provided interest rate cuts this year, growth risks outweigh inflation concerns, banks expect to resume their reduction cycles with caution soon. Currently, the market expects the next interest rate cuts to be offered at the next meeting in May.”
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