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US Futures Move Higher Ahead of Key Inflation Report: Markets End

(Bloomberg) – U.S. equity futures posted modest gains on Wednesday in cautious trade ahead of U.S. inflation data that will shape investor expectations for the Federal Reserve. The US Federal Reserve raised interest rates further.

S&P 500 contracts rose 0.2 percent, following a fourth drop in the underlying on Tuesday after Micron Technology Inc. became the latest chipmaker to warn of slowing demand. Nasdaq 100 futures rose 0.3%. Tesla Inc. rallied after CEO Elon Musk sold the biggest stock on record. Europe’s Stoxx 600 Index erased the initial decline.

Stable bonds. Two-year Treasury yields exceeded nearly 50 basis points on 10-year notes, a reversal – the deepest range since 2000 – seen as a sign of a recession looming in the campaign. Fed’s monetary tightening to control inflation.

A report on Wednesday is expected to make headlines with US consumer price inflation cooled but still rising in July, while the core index is likely to increase rapidly year on year. How the numbers affect views on Fed tightening will be key to risk sentiment.

“Today’s inflation numbers could resonate for markets for the rest of the month,” said Craig Erlam, a senior market analyst at Oanda. “A lower-than-expected number could be a headwind for markets while anything around or above the June figure could trigger a major risk reversal in the markets. market when the debate turns to 75 or 100 basis points, there are 50 points left in mirror vision.”

The dollar gauge fell, while crude fell below $90 per barrel. Gold was little changed and Bitcoin fell.

Federal Reserve Bank President James Bullard of St.

“The Fed is going to push those short-term rates higher,” said Gary Schlossberg, global strategist at Wells Fargo Investment Institute. “We should see a deeper inversion and a full inversion of the Treasury yield curve.”

China’s military said drills held around Taiwan in response to US House Speaker Nancy Pelosi’s visit have ended, and pledged to continue regular patrols near the island.

As Europe’s worst energy crisis could escalate in decades, the Rhine was said to be nearly impassable at a key point in Germany on August 12, with barges in efficiently transporting everything from diesel to coal cannot be transported across rivers. Meanwhile, the UK is planning for more days in winter when frigid weather could combine with gas shortages, leading to organized blackouts for industries and even utilities. family.

Musk sold $6.9 billion in Tesla stock, the biggest purchase on record for a billionaire, saying he needed cash in case he was forced to move on with his aborted deal to buy Twitter Inc. Tesla was up 2.7% in pre-market trading.

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What to watch this week:

  • US CPI Data, Wednesday

  • Chicago Fed President Charles Evans and his Minneapolis counterpart Neel Kashkari will speak, Wednesday

  • US PPI, Initial Jobless Claims, Thursday

  • San Francisco Fed President Mary Daly gives an interview on Bloomberg Television, Thursday

  • Industrial production in Europe, Friday

  • University of Michigan Consumer Sentiment, USA, Friday

Some key moves in the market:

Inventory

  • Futures on the S&P 500 rose 0.2% at 6:05 a.m. New York time

  • Nasdaq 100 futures rose 0.3%

  • Futures on the Dow Jones Industrial Average rose 0.2%

  • Stoxx Europe 600 little changed

  • The MSCI World Index fell 0.1%

Currency

  • The Bloomberg Dollar Spot Index is down 0.1%.

  • The euro rose 0.1% to $1.0225

  • British Pound was little changed at $1.2084

  • The Japanese yen was little changed at 134.94 a dollar

Bonds

  • Yields on 10-year bonds were little changed at 2.77%

  • German 10-year yield drops three basis points to 0.89%

  • UK 10-year yield drops two basis points to 1.95%

Goods

  • West Texas Intermediate crude fell 1.1% to $89.53 per barrel

  • Gold futures fell 0.1% to $1,810.20 an ounce

More stories like this are available on bloomberg.com

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