The report is expected to show that US inflation retreated further from 40-year highs
Wall Street stocks rallied on Friday to post solid weekly performance following a three-week losing streak. The recovery was mainly due to upbeat economic reports pointing to continued resilience in the economy. The Dow Jones Industrial Average gained 1.19%, the S&P 500 jumped 1.53%, and the Nasdaq Composite climbed 2.11%. For the week, the Dow added 2.66%, the S&P 500 gained 3.65%, and the Nasdaq Composite advanced 4.14%.
Asian equities were higher at the start of the week. Many regional markets were closed for holidays while Tokyo’s Nikkei 225 gained 1.16% and the S&P/ASX 200 in Sydney surged 1.02%. The risk-on tone persists due to the fact that investors await more signs that US inflation is cooling. The key CPI data for August is expected to show that US inflation retreated further from 40-year highs hit this summer. The report is due on Tuesday.
In Europe, stock markets opened marginally higher today, with risk demand abating slightly. The pan-European Stoxx 600 edged just 0.3% higher in early deals. US stock index futures retain a bullish bias as well, with S&P 500 futures up 0.2% in early pre-market trading. On the data front, UK’s July monthly GDP came in at +0.2% versus +0.4% m/m expected while manufacturing output arrived at 0.1% in July versus 0.6% expectations.
Meanwhile, the US dollar derailed the 108.00 mark for the first time in 2.5 weeks amid the persisting risk-on sentiment in the global financial markets. Also, the greenback is pressured by a stronger euro after the recent rate hike by the ECB. The USD index fell to 107.80 on Monday and could extend the decline in the days to come should US inflation slows down further. The next target for sellers arrives at 107.60.
Leave Your Opinion