The German DAX index began Wednesday with minor losses as investors exercised caution ahead of Nvidia’s quarterly earnings, a major market-mover expected later today. Broader global factors, including oil price movements and inflation metrics in the U.S., also influenced market sentiment.

The DAX opened slightly lower on Wednesday, trading at 26,247 points compared to yesterday’s close of 26,266 points, which was buoyed by promising economic reports. Investors were reluctant to take on risks ahead of Nvidia’s quarterly earnings announcement, often known for causing significant moves in the market. Experts are keenly observing whether Nvidia’s results will meet heightened expectations given its leadership in artificial intelligence and chip technology. Historically, even strong earnings haven’t prevented post-announcement profit-taking, tempering enthusiasm.

Oil prices remained under pressure following reports of potential increased shipping activity through the Strait of Hormuz. Oman and Iran are reportedly negotiating a temporary maritime corridor to boost oil exports from the Persian Gulf. Brent crude prices have fallen sharply, shedding $8 since Monday to hover around $85 per barrel. The softer energy prices supported gains in Asian markets, where the Nikkei Index rose 0.6% and the Kospi climbed 1%. U.S. markets also posted modest growth on Tuesday, with the Dow Jones adding 0.3% and tech-heavy Nasdaq rising 0.7%.

Additional market data is expected later in the day as the U.S. releases its PCE Price Index, a critical inflation gauge closely monitored by the Federal Reserve. Analysts anticipate a modest increase, which could reassure markets and provide further stability. Meanwhile, Aroundtown, a real estate firm listed in the MDAX, reported a 4% drop in operating earnings amid higher financing costs. Despite solid performance in housing and hospitality sectors, its commercial office operations continued to face muted demand in Germany. The company reaffirmed its annual guidance despite a 62% dip in net profit compared to last year.