A look at the day ahead in European and global markets from Rae

Wee

Earnings results from Nvidia ( NVDA ) will be the marquee event

for markets on Wednesday, with all eyes on how much U.S.

technology curbs on China will cost the AI bellwether.

Company watchers expect the chip giant to report a 66.2%

surge in first-quarter revenue to $43.28 billion, however

uncertainty surrounding its China business looms large even as a

pullback in other regulations is set to open up new markets.

As it is, traders in the options markets are bracing for

industry-wide volatility after the results, with defensive

options contracts on a major semiconductor ETF drawing heavy

attention.

Earnings aside, investors will also be watching developments

in global bond markets after demand on Wednesday for Japan's

40-year government bond auction was its lowest since November,

underscoring the market's diminishing capacity to absorb new

debt.

Long-end yields have surged worldwide in recent weeks on a

heavy selloff in bonds as concern mounts over fiscal deficits,

particularly in developed nations such as the U.S. and Japan.

Worries over tax cuts and that the United States' chaotic

tariff policy will stoke inflation and propel government

spending have made investors increasingly nervous about holding

long-dated sovereign debt.

On Tuesday, Reuters' exclusive report that Japan is

considering trimming the issuance of super-long bonds was

followed by a drop in both yields and the yen.

Yields on Japanese government bonds were little changed

following Wednesday's auction. U.S. Treasury yields edged up

slightly after falling the previous day.

Over in New Zealand, the central bank cut its benchmark

interest rate by 25 basis points and flagged a slightly deeper

easing cycle than it forecast three months ago, underlining risk

to economic growth from a sharp shift in U.S. trade policy.

Key developments that could influence markets on Wednesday:

* North America earnings: Nvidia ( NVDA ), Bank of Montreal, National

Bank

of Canada, DICK'S Sporting Goods, Macy's

* U.S. auction of two-year floating rate, five-year notes

* German auction of 15-year Federal bonds

* German unemployment data for May

* France Q1 GDP final reading, producer prices for April

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