European stocks were set for modest gains as traders await Nvidia Corp.’s results for cues on the growth momentum of artificial-intelligence related stocks.
Asian equities traded within narrow ranges amid weak corporate earnings in China. Euro Stoxx 50 futures rose 0.1%, indicating a muted start for the shares in the region, while contracts for US stocks were little changed in Asian trading.
Chinese stocks in Hong Kong fell as much as 1.6%, while those in the mainland declined to their lowest since early February. Bottled water maker Nongfu Spring Co. shares plunged as much as 13% after posting the slowest half-year profit growth in four years, becoming the latest company to issue disappointing results.
“So far we are still seeing much more downgrades than upgrades” in Chinese earnings, Winnie Wu, a China equity strategist at Bank of America Corp., told Bloomberg TV.
Internet companies are outperforming other sectors in beating earnings expectations, but materials, tech, builders, auto and other industries pose significant downside risks, she said.
