Key facts
- The FTSE 100 is expected to fall on Thursday morning.
- Nvidia's second-quarter sales more than doubled to $96.2 billion.
- Nvidia provided gross margin guidance of 74%, below market expectations.
- Oil prices fell as negotiations for a peace deal and reopening of the Strait of Hormuz gained pace.
- President Donald Trump asserted the Strait of Hormuz is functioning and open.
The FTSE 100 is anticipated to open lower on Thursday, according to futures data from IG. The UK's blue-chip index closed broadly flat on Wednesday, with JD Sports, IG, and British American Tobacco among the top performers. Analysts noted that while BP and Shell faced selling pressure due to falling oil prices, the retail and aviation sectors saw gains on hopes of progress in resolving the Middle East crisis.
Oil prices continued their downward trend as reports suggested that negotiations for a peace deal and the reopening of the Strait of Hormuz were advancing. Brent crude, the international benchmark, fell approximately 1.3% to just over $87 per barrel. President Donald Trump, in comments to Fox News, asserted that the Strait of Hormuz is a functioning waterway, despite occasional incidents, and that significant oil is flowing through it.
In corporate news, chipmaking giant Nvidia released its second-quarter trading update, more than doubling its sales to $96.2 billion, surpassing analyst expectations of $92.2 billion. However, the company's gross margin guidance of 74% fell short of the 75% anticipated by markets, leading to a sell-off in its shares after the closing bell.