Geopolitics and Nvidia's report: important signals for the stock market this week

US stock futures are showing a slight increase on Monday after a noticeable decline last week. The main reasons for the decline in Western countries are weak data on economic activity in the US (fell to a 17-month low) and the influence of consumer sentiment in the country, which may be a harbinger of economic stagnation on the continent.

The German parliamentary elections took place at the exit: Friedrich Merz became the new chancellor. He plans to quickly lead the ruling coalition of the Social Democratic Party if they can achieve a majority (if successful, this could have a positive impact on the euro). Merz also announced his intention to achieve greater independence of Germany from the US, which is causing some tension due to the economic situation in the country, which is dependent on the leading market.

In the commodity sector, gold continues to rise amid uncertainty in the US economy, while oil prices have fallen significantly amid expectations of the resumption of exports from Kurdistan.

This will be especially focused on the Nvidia report, which will be released a week after the markets close and will set an indicator for the stock market. The company, known for its achievements in the field of AI, has shown a growth of more than 550% in the last two years, and its results can lead to a decline in sentiment.

In addition, this publication publishes a report on the US consumer spending index, which is considered a proxy for the indicator. A decline in the indicators is expected, but the markets have already largely priced this decline into their quotes.

In the geopolitical arena, the US and Russia are ready to declare the continuation of the hostilities in Ukraine, but an agreement has not been reached with the Ukrainian side - the regime is demanding security guarantees under the draft ceasefire agreement. Any information from this area can give a powerful boost to all sectors of the financial market. #analytics