Dubai Telegraph - Stock markets diverge awaiting Nvidia earnings

Chinese stocks slid following modest gains Tuesday on Wall Street as investors sought to look beyond President Donald Trump's move to oust a US Federal Reserve governor.

The Paris stock market rebounded slightly after Tuesday's tumble caused by fears that France's minority government could be toppled after Prime Minister Francois Bayrou proposed a confidence vote over his proposed budget cuts.

A slide for Shanghai's market came despite a surging share price for Cambricon -- a leading Chinese chipmaker and a Nvidia competitor -- on the heels of a record first-half profit posted Tuesday.

Nvidia will report second-quarter financial results on Wednesday, closely watched as a bellwether for the industry as worries about a tech bubble rise.

"The company has outgrown the tech sector and become the market's lodestar," said Stephen Innes of SPI Asset Management.

"Analysts expect revenue to soar 53 percent to $46 billion, but this is about more than revenue beats," he added. "The crowd wants reassurance that the AI revolution isn't just smoke and mirrors."

Also heavily impacting markets this week has been a highly unusual move by Trump to fire Federal Reserve governor Lisa Cook.

He cited allegations of false statements on her mortgage agreements, but Cook said Trump had no authority or legal cause to fire her and her lawyer announced a planned legal challenge on Tuesday.

The step adds to fears about the independence of the central bank, fuelled by Trump's repeated public demands to Fed chairman Jerome Powell to lower interest rates.

Powell suggested last Friday that more cuts to US interest rates were on the horizon, causing stocks markets to surge.

The dollar firmed against main rivals Wednesday despite expectations of lower US borrowing costs.

Investors were also awaiting US economic growth data due Thursday and a key inflation gauge Friday for clues on how far interest rates might fall -- or not -- in the coming months.

Oil prices extended Tuesday's fall, paring back recent increases as traders track a possible peace deal to end the war between Ukraine and key crude producer Russia.

- Key figures at around 1045 GMT -

Paris - CAC 40: UP 0.4 percent at 7,737.12 points

London - FTSE 100: FLAT at 9,262.90

Frankfurt - DAX: DOWN 0.2 percent at 24,106.32

Tokyo - Nikkei 225: UP 0.3 percent at 42,520.27 (close)

Hong Kong - Hang Seng Index: DOWN 1.3 percent at 25,201.76 (close)

Shanghai - Composite: DOWN 1.8 percent at 3,800.35 (close)

New York - Dow: UP 0.3 percent at 45,418.07 (close)

Euro/dollar: DOWN at $1.1584 from $1.1637 on Tuesday

Pound/dollar: DOWN at $1.3431 from $1.3475

Dollar/yen: UP at 148.09 yen from 147.45 yen

Euro/pound: DOWN at 86.24 pence from 86.36 pence

West Texas Intermediate: DOWN 0.3 percent at $63.08 per barrel

Brent North Sea Crude: DOWN 0.3 percent at $66.48 per barrel

H.El-Hassany--DT