On Monday, November 9, European stock markets opened with little direction as investors weighed news that NVIDIA (NASDAQ: NVDA)'s board of directors has launched an independent investigation into CEO Jensen Huang, while also awaiting U.S. inflation and eurozone growth data due later in the week.
The pan-European Stoxx 600 slipped 0.1% in early trade, Germany's DAX was roughly flat, France's CAC 40 fell 0.3%, and the UK's FTSE 100 declined 0.1%.
In the technology sector, NVIDIA (NASDAQ: NVDA)'s board has initiated an independent investigation into a personal relationship controversy recently involving Huang, sparking concerns about corporate governance and management stability. NVIDIA (NASDAQ: NVDA) shares listed in Frankfurt dropped about 6% in early trading. Previously, NVIDIA (NASDAQ: NVDA)'s stock had already come under sustained pressure amid factors including changed AI industry regulatory prospects following the U.S. midterm elections.
On the macroeconomic front, investors this week will focus on speeches by European Central Bank President Christine Lagarde, Chief Economist Philip Lane and other officials, as well as the U.S. October Consumer Price Index (CPI) and eurozone third-quarter GDP data. The market expects U.S. headline CPI to rise 0.3% month-on-month in October.
Meanwhile, the eurozone's October inflation rate has climbed to 4.0%, a three-year high, with market expectations for another ECB rate hike in December continuing to build. Against the backdrop of elevated energy prices that continue to squeeze European corporate profit margins, the upcoming GDP data will serve as an important basis for judging whether the eurozone economy can avoid a recession, and will also influence market expectations for the magnitude and pace of the ECB's subsequent rate hikes.
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