Global Markets:
- Asian Stock Markets : Nikkei up 1.29%, Shanghai Composite down 0.08% Hang Seng up 1.47% ASX up 0.32%
- Commodities : Gold at $4,037.85 (-0.78%) Silver at $58.740 (-0.62%), Brent Oil at 85.70 (1.16%), WTI Oil at $80.00 (0.86%)
- Rates : US 10-year yield at 4.598, UK 10-year yield at 4.9856, Germany 10-year yield at 3.0701
News & Data:
- (USD) Core CPI m/m 50.6 to 48.0 expected
Markets Update:
U.S. stock futures edged higher early Wednesday after weaker-than-expected inflation data boosted investor confidence that the Federal Reserve may take a less aggressive approach to interest rate hikes. Dow Jones futures rose 0.1%, while S&P 500 and Nasdaq 100 futures gained 0.2% and 0.7%, respectively.
Wall Street advanced Tuesday after U.S. consumer prices fell 0.4% in June from the previous month, lowering annual inflation to 3.5%, below economists’ expectations of 3.8%. Following the report, traders sharply reduced expectations of a July rate hike, though markets still anticipate at least one increase later this year.
Asian markets also traded higher. South Korea’s Kospi surged 6.3%, while the Kosdaq climbed 4%. Japan’s Nikkei 225 and Topix each gained 0.9%, and Australia’s S&P/ASX 200 rose 0.6%.
Investors are now focused on another busy day of corporate earnings, with United Airlines, Morgan Stanley, Johnson & Johnson and BlackRock scheduled to report. The earnings season has started positively after major U.S. banks, including JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and Goldman Sachs, exceeded analysts’ forecasts.
Meanwhile, oil prices moved higher after the U.S. launched another round of strikes targeting Iranian military assets near the Strait of Hormuz, increasing concerns over potential disruptions to global energy supplies. West Texas Intermediate crude climbed above $80 per barrel, while Brent crude traded near $86.
Upcoming Events:
- 12:30 PM GMT – USD Core PPI m/m
