FISG Daily Market Wrap 12th November

Nvidia Leadership Uncertainty, Currency Pressures and the AI Investment Outlook

Global markets came under pressure as investors assessed reports surrounding Nvidia CEO Jensen Huang and the potential implications for the company’s leadership. Nasdaq 100 futures fell 1.2%, while S&P 500 futures declined 0.5%. Asian equities also weakened, with Taiwan’s technology-heavy benchmark dropping 2.6%. Nvidia shares fell as much as 10% in late US trading following reports that the company had engaged an external firm to identify potential successors to Huang. The reports have raised concerns about leadership uncertainty at a company central to the global AI investment boom. Meanwhile, Anthropic’s anticipated IPO is attracting significant attention, with investors viewing it as an important test of the AI sector’s strength and its ability to sustain the stock market rally. In fixed income markets, long-dated US Treasuries gained as investors sought safer assets. The 30-year Treasury yield declined 2 basis points to 5.33%, while the 10-year yield remained around 4.99%. Elsewhere, Indonesia’s rupiah hit a record low, prompting central bank intervention, while the Japanese yen approached the closely watched 160-per-dollar level. Tokyo officials warned that recent currency movements had been excessively rapid, raising expectations of possible intervention. Energy markets remained subdued, with Brent crude falling below $92 per barrel and approaching a two-month low. Higher Middle Eastern production and relatively muted hostilities between Iran and the US have weighed on prices, although there has been little evidence of progress towards a peace agreement. Developments across the Persian Gulf therefore remain a key factor for the energy outlook. Separately, Canada's largest pension fund plans to roughly double its hedge fund investments over the next five to seven years, signalling continued institutional confidence in the strategy. Gold also extended its losses amid stronger-than-expected US inflation and hawkish comments from Federal Reserve officials. FISG Daily Market Wrap provides a concise view of the forces moving global markets, helping investors stay informed and better prepared for what comes next. FISG — Interstellar Group