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MORNING BID EUROPE-Nvidia delivers, but good no longer cuts it

MORNING BID EUROPE-Nvidia delivers, but good no longer cuts it
MORNING BID EUROPE-Nvidia delivers, but good no longer cuts it

Rae Wee gives us a look at what the European and global markets will be like today. With so many expectations?for Nvidia?, even a solid beating of its earnings didn't satisfy investors who were chasing higher returns on artificial intelligence.

After hours, shares of the most valuable company in the world traded flat. This was a reversal of a brief bounce that followed its January-quarter results. These showed sales exceeding analyst expectations. They also forecast revenue for the current quarter above market projections.

The markets are used to the chipmaker's solid revenue beatings for 14 consecutive quarters. Wednesday's result was hardly a shock.

It has at least put the worry about AI-driven disruptions and their costs to the side. Stocks in Asia rose on Thursday in a relief rally, while U.S. futures and European futures were lower.

Investors have been a bit unsure about the AI market in the last few weeks. They are worried about the returns on their investment, and the potential for it to disrupt entire industries. But they also don't want to "sit back" and do nothing.

Analysts also say that the AI boom will no longer be the tide which lifts all the boats.

Geopolitics continue to?cast a cloud on markets in other places.

The third round of talks between the U.S., Iran and their negotiators this year will take place in Geneva on Thursday. The U.S. is also building up its largest military presence in the Middle East to prepare for possible attacks on the Islamic Republic.

In his State of the Union address earlier this week Donald Trump briefly outlined his case for an attack on Iran, saying that his preference would be to "solve the issue through diplomacy", but that he wouldn't allow Tehran to possess a nuclear bomb. Iran claims that its nuclear activities are for the production of civilian energy.

The U.S. rhetoric kept oil prices high on Thursday as investors worried about a possible supply disruption in case of conflict.

The yen, which is a currency, was once again in the spotlight after the Japanese government appointed two academics who were seen by the markets as strong advocates of economic stimulus, to the Bank of Japan board.

Market participants were surprised by the move, which they interpreted as reflecting Prime Minister Sanae Takayichi's monetary policy preferences. This put into doubt future interest rate increases from central banks.

The currency gained support after the Yomiuri reported that BOJ Governor Kazuo Ueda had left the door open to a rate hike in the near future, and board member Hajime Takata called for a gradual tightening of policy.

The following are key developments that may influence the markets on Thursday.

* U.S.-Iran talks

Weekly U.S. jobless claims

(source: Reuters)