Markets stabilize in anticipation of U.S. data, optimism in stock futures

From Investing.com: 2024-08-13 08:16:06

Stocks, bonds, and oil prices stabilized on Tuesday as investors awaited key data such as U.S. inflation numbers to guide the Federal Reserve’s policy. European stocks edged down as the U.S. producer price data loomed. U.S. stock futures were cautiously optimistic, with Nasdaq up 0.32%. Oil prices rebounded over 3% following last week’s volatility.

The yen dropped 0.08% to 147.3 per dollar after reaching a seven-month high of 141.675 last week. Investors were caught off guard by a Bank of Japan rate hike last month. Leveraged funds quickly closed their positions in the yen at the fastest rate since March 2011. A potential carry trade unwind may see the yen rise further.

Data this week will influence the Federal Reserve’s next move. Traders are split between a 25 or 50 basis-point cut in September. Markets are pricing in 100 bps of cuts this year. Soft inflation data could push the Fed to increase rate cuts. U.S. CPI data for July is expected to show a slight uptick to 0.2%.

Euro zone bond yields were stable, with the German 10-year yield remaining at 2.201%. The dollar index was slightly up at 103.17. In commodities, Brent futures eased to $81.81 a barrel, while WTI crude futures slipped to $79.67. Brent had gained over 3% on Monday, with WTI up over 4%.



Read more at Investing.com: Stocks and bonds steady in lull ahead of U.S. data By Reuters