Investing.com - Australian shares are expected to drop as US markets maintain a cautious stance ahead of tech giant NVIDIA's (NASDAQ:NVDA) quarterly results release.
Locally, the spotlight is on the Reserve Bank of Australia (RBA), with governor Michele Bullock set to speak about monetary policy at the ABE Annual Dinner at 7.35pm in Sydney.
As discussions intensify over potential rate cuts by central banks, European Central Bank (ECB) President Christine Lagarde emphasized in a Berlin speech the need to remain vigilant regarding persistent inflation risks.
In corporate news, Webjet Ltd (ASX:WEB) is set to release its earnings report, and several companies including City Chic Collective Ltd (ASX:CCX), Downer Edi Ltd (ASX:DOW), Lovisa Holdings Ltd (ASX:LOV), Medibank Private Ltd (ASX:MPL), Netwealth Group Ltd (ASX:NWL), Pacific Smiles Group Ltd (ASX:PSQ), and Praemium Ltd (ASX:PPS) are slated to host their annual meetings. Nufarm Ltd (ASX:NUF) shares will also trade ex-dividend.
ASX 200 Futures are down 4 points or 0.1% to 7100 near 8am AEDT, indicating a potentially soft start for the local market. The Australian dollar is slightly lower at 65.55 US cents, and Bitcoin is down by 0.9% to $US36,980 at 8.10am AEDT.
The market rally's upcoming challenge will be Nvidia's quarterly results. The expected EPS for the quarter is $US3.37, representing a year-over-year growth of 480%, and revenue estimates stand at $US16.191 billion, a 173% year-over-year growth.
HSBC's head of technology research in Asia, Frank Lee, remains optimistic about Nvidia's AI server momentum and expects another revenue guidance beat for FY4Q24, albeit smaller than the last quarter. HSBC maintains a 'buy' rating with a $US800 price target.
The iron ore price has surged to its highest intraday price since February, driven by optimism surrounding China's latest economic stimulus drive.
In other commodities, uranium prices have reached a 15-year high of $US80 a pound due to renewed demand for nuclear power and disrupted supplies. Oil prices have seen a slight decrease, paring a two-day advance, as traders temper expectations that OPEC+ will intervene in the market to bolster prices.