A look at the day ahead in European and global markets
|
|
|
|
By Rocky Swift, Correspondent
|
|
|
|
|
Global flash points tried hard to steal the spotlight from a U.S. inflation report that could set the tone for September's Fed meeting.
Houthis launched a fatal attack on an Egyptian ship in the Red Sea, with no end in sight to the war in Iran. North Korea lobbed another ballistic missile into the ocean, and Taiwan protested China's planned naval drills off the island's east coast.
|
|
|
|
Oil's climb raises inflation risk |
A rocket launcher fires a munition during tests in North Korea, June 25, 2026, in this picture released by North Korea's official Korean Central News Agency. KCNA via REUTERS/File Photo
|
Brent crude prices rose for a sixth straight session, poised for the longest streak higher since late April, highlighting mounting pressure on central banks to contain energy-driven inflation.
The Reserve Bank of Australia delivered a hawkish hold on policy rates on Tuesday, while traders are increasingly betting the Bank of Japan could tighten again as soon as next month.
Today's consumer price index data in the U.S. won't capture the most recent rise in energy costs, but it is still likely to shape expectations for the Federal Reserve's September meeting, with money markets showing an even chance of a hike.
|
Graphics are produced by Reuters
|
|
|
|
U.S. consumer prices are expected to have increased 0.1% last month after falling 0.4% in June, according to a Reuters poll. Annual CPI inflation is forecast to slow to 3.4% from 3.5% a month earlier.
The data follows a bad miss on U.S. payrolls last Friday, highlighting the narrow path for Fed officials in balancing support for the economy and keeping inflation in check.
Fed rate prospects will weigh heavily on currencies, with the yen having given up much of its gains. The yen slid to 159.45 per dollar in Asian trade, the weakest since coordinated intervention between Japan and the U.S. bolstered the currency to the 155.2 level last week.
Futures pointed to a slightly lower open in European markets, with the pan-region Euro Stoxx 50 contracts down 0.06%. German DAX futures were 0.08% lower, and FTSE futures slid 0.25%. U.S. stock futures, the S&P 500 e-minis , were up 0.11%.
|
|
|
|
Key developments that could influence markets on Wednesday: |
- July CPI data for the U.S., Germany, Italy
- United Kingdom RICS Housing Survey for July
- Earnings: Q2 results for Bechtel AG, Sampo Oyj, ABN Amro Bank NV
|
|
|
|
Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
|
|
|
|
|
|
| |
|
|
Morning Bid is sent every weekday morning. Think your friend or colleague should know about us? Forward this newsletter to them. They can also sign up here. Want to stop receiving this email? Unsubscribe here. To manage which newsletters you're signed up for, click here. This email includes limited tracking for Reuters to understand whether you’ve engaged with its contents. For more information on how we process your personal information and your rights, please see our Privacy Statement. Terms & Conditions |
|
| |
© 2026 Thomson Reuters. All rights reserved.
3 Times Square, New York, NY 10036 |
|
|
|
|
|
No comments:
Post a Comment