Key Takeaways
- Nvidia (NVDA) CEO Jensen Huang has stated he has no new information on China sales today and expressed an expectation of "zero" market share in the country, despite hoping for a non-zero presence.
- China's services trade deficit widened significantly, reaching $153.2 billion for the January-September period and $16.8 billion in September alone.
- European Central Bank (ECB) surveys indicate stable inflation near the 2% medium-term target and only modest improvements in business conditions across eurozone firms.
- Spain's current account balance saw a decline in August to €5.08 billion from €6.3 billion, while LME aluminium inventories surged by 98,525 tons to a total of 558,050 tons.
Nvidia Faces China Headwinds
Nvidia (NVDA) CEO Jensen Huang has conveyed a challenging outlook for the company's operations in China, stating today that he has "no news" on China sales. Huang reiterated earlier sentiments, expressing that while he hopes for a non-zero market share in China, the company is expecting zero due to ongoing U.S. export controls. This follows previous comments where Huang noted Nvidia's market share in China's high-end chip market had fallen from 95% to 0%. He has also critically viewed the U.S. technology blockade against China as a "mistake," emphasizing the importance of the Chinese market.
China's Services Trade Deficit Expands
In economic news from Asia, China's services trade deficit continued its expansion. The nation recorded a $16.8 billion deficit in services trade for September. This contributed to a substantial cumulative services trade deficit of $153.2 billion for the January-September period, as reported by the FX regulator. These figures underscore persistent imbalances within China's services sector.
Eurozone Economy Shows Modest Gains, Stable Inflation
Across the eurozone, recent surveys conducted by the European Central Bank (ECB) indicate a landscape of modest economic improvement and stable inflation. The ECB's Corporate Survey revealed that firms reported a slight improvement in business conditions, though growth in activity remains modest. This suggests a cautious and gradual recovery trajectory for businesses in the bloc.
Furthermore, the ECB’s Survey of Professional Forecasters (SPF) indicated that inflation remains close to the 2% medium-term target, with the Governing Council’s assessment of the inflation outlook broadly unchanged. Longer-term inflation expectations are holding steady at 2.0%, providing a degree of stability to the inflation outlook.
Spain's Current Account Declines, Aluminium Inventories Rise
Specific economic data from Spain showed a contraction in its current account balance for August, which declined to €5.08 billion from the previous month's €6.3 billion. This marks a decrease in the country's external balance.
In the commodities market, London Metal Exchange (LME) aluminium inventories experienced a notable surge. Stockpiles increased by 98,525 tons, bringing the total LME aluminium inventory to 558,050 tons. This significant rise in inventory could influence global aluminium pricing and market dynamics.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.