EU REAL ESTATE: CPI Property (CPIPGR; Ba1 neg/BB+ neg) Curve Moves

NVIDIA earnings due after the close today at 2120BST/1620ET. Firm is expected to report EPS of $0.934, having beaten EPS expectations in all but 2 of the 13 quarterly reports seen since the beginning of 2022.

• NVIDIA remains the second largest stock in the S&P 500 after Microsoft, equating to just under 6% of the index. The effects of the report will likely be far further reaching, however, as NVIDIA performance tracks closely with AI demand, tech sector growth and it's increasing role in international relations.
• Outside of the headline financial metrics, focus will be on any updates on the supply of Blackwell chips as well as the future of their $5.5bln H20 chip stockpile - created to comply with US export sanctions, but retroactively banned for sale to China.

SX7E (19th Sep) 150/235RR, bought the Call for 0.20 in 6k vs ~1k at 203.00.

Following today's RBNZ rate cut, HSBC write that rate differentials are now turning more supportive, and see today’s decision as best played via AUD-NZD downside, as divergence in policy expectations is favouring the NZD.

• Their AUD/NZD model paths have now turned aggressively lower since the May RBA meeting and they see today’s decision as further strengthening this trajectory.
• For NZD/USD the rate differential is turning more supportive. De-escalation in trade tensions should alleviate the pressure on the regional growth outlook and improve overall risk sentiment.
• As such, NZD/USD should benefit over time, given New Zealand’s deep export dependence on APAC peers and its current account deficit funding needs. NZD/USD still screens undervalued versus these key drivers as a result.