Nvidia Earnings Up Next. Japan–China Rift Hits Tokyo Stocks

Nvidia will be in focus this week as markets weigh its influence on the AI-driven tech rally that showed signs of stress last week. Tech stocks led a major pullback across global stock markets last week. On Monday Tokyo-listed Ryohin Keikaku, Isetan Mitsukoshi and Shiseido each fell about 10% after China warned its citizens against travel to Japan, following comments by Japan’s prime minister on Taiwan.

Equities

The FTSE 100 fell 1.1% on Friday, its steepest daily decline since April, after reports suggested the UK government had reversed plans to raise income tax in the 26 November budget. The shift pushed gilt yields sharply higher and unsettled broader equity sentiment. The FTSE 250 dropped 0.8% on the day, leaving both major indices under pressure despite modest gains earlier in the week.

Losses spread across major UK sectors. Banking stocks fell 2.2% as higher gilt yields weighed on the outlook for funding costs. Precious metal miners slipped 2.4% as gold prices declined.

Land Securities dropped 5.2% on Friday after reporting a fall in property valuations during the first half of its financial year, which raised concerns about commercial real estate prices. Melrose Industries finished 1.2% lower after the GKN Aerospace owner maintained its full-year guidance without upgrading expectations.

PPHE Hotel Group rose 16.3% after key investors said they were considering selling a stake in the company. The move drew interest from traders looking for opportunities in the hospitality sector.

Elsewhere, the Bank of England said it would examine potential regulatory changes aimed at improving life insurers’ access to capital markets, responding to industry concerns about costs and delays in issuing debt and equity.

Across the Atlantic, US markets ended Friday in mixed fashion. The S&P 500 slipped 0.05%, the Nasdaq gained 0.13% and the Dow fell 0.65%. During early trade, all three indices had declined more than 1% before recovering as the session progressed. Nvidia, Microsoft and Palantir each rose more than 1% on Friday as traders looked ahead to Nvidia’s quarterly results.

UnitedHealth Group fell 3.2% and Visa slipped 1.8%, weighing on the Dow. Warner Bros Discovery gained 4% after announcing an amendment to CEO David Zaslav’s employment agreement as part of its ongoing strategic review. Shares in Cidara Therapeutics more than doubled after Merck agreed to acquire the company in a deal worth nearly $9.2 billion.

Forex & Commodities

The US dollar edged up with the dollar index rising to 99.37 as traders waited for the release of delayed US economic data following the government shutdown.

The euro slipped to $1.1607 and the Australian dollar eased to $0.6527, while the New Zealand dollar moved down to $0.5673. Sterling drifted lower to $1.3161 as investors assessed the implications of Finance Minister Rachel Reeves ruling out an income tax increase in the upcoming 26 November budget. Against the pound, the euro held near 0.8823. The yen stayed weak at 154.60 per dollar, keeping traders alert to the risk of official intervention.

Spot gold slipped early on Monday to $4063 per ounce as the stronger dollar weighed on demand. Market attention remained on the week’s US data updates, including September nonfarm payrolls due on Thursday, while recent comments from Federal Reserve policymakers suggested caution over further easing after two rate cuts earlier this year. Traders continued to price less than even odds of a December cut.

Oil prices moved down on Monday after loadings resumed at Russia’s Novorossiysk port. Brent crude fell to $63.86 per barrel and WTI eased to $59.53 per barrel after both benchmarks had risen more than 2% on Friday when exports were briefly suspended following Ukrainian attacks.

Developments around wider sanctions also remained in focus after President Trump said Republicans were preparing legislation targeting countries doing business with Russia, with Iran potentially included.