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Bloomberg
US equity futures and Treasuries edged lower, while the dollar strengthened on Wednesday ahead of a key report on American inflation that will be parsed by traders for clues on the direction of central-bank policy.
Contracts on the S&P 500 Index slipped from a record ahead of data out on Wednesday showing US consumer prices probably jumped again in July. Crude oil was steady after bouncing from a three-week low as a report showed shrinking inventories.
Investor focus on US price data comes as Federal Reserve officials talk up the prospects of unwinding some of the stimulus that has helped the recovery from the pandemic.
Chicago Fed President Charles Evans said he expects substantial further progress later this year on the central bank’s tapering intentions.
“The evidence from recent big CPI prints is that the market doesn’t believe it’s sustainable so it might take a lot to shake things up today,†said Jim Reid, a strategist at Deutsche Bank AG in London. “The breakdown will be very important so let’s see if more of the transitory inflation filters into non-Covid related sectors.â€
The Stoxx Europe 600 Index fluctuated amid strong earnings from the likes of ABN Amro Bank NV and Stop & Shop owner Royal Ahold Delhaize NV. Shares rose in Japan and Chinese stocks were little changed, while those in South Korea retreated after the country posted a record number of coronavirus cases.
Elsewhere, Bitcoin was back above $45,000 even as the Senate passed an infrastructure bill containing broad oversight of virtual currencies.
Kansas City Fed President Esther George among Fed speakers through the week. The US consumer price index on Wednesday is forecast to show prices increased again in July
OPEC Monthly Oil Market Report due on Thursday.
The Stoxx Europe 600 was little changed in London. Futures on the S&P 500 fell 0.1%. Futures on the Nasdaq 100 fell 0.3%. Futures on the Dow Jones Industrial Average were little changed. The MSCI Asia Pacific Index rose 0.2%. The MSCI Emerging Markets Index rose 0.5%.
The Bloomberg Dollar Spot Index was little changed. The euro was little changed at $1.1714. The Japanese yen fell 0.2% to 110.80 per dollar. The offshore yuan was little changed at 6.4898 per dollar. The British pound fell 0.2% to $1.3810.
The yield on 10-year Treasuries advanced two basis points to 1.37%. Germany’s 10-year yield advanced two basis points to -0.44%. Britain’s 10-year yield advanced two basis points to 0.61%. Brent crude rose 0.2% to $70.79 a barrel. Spot gold rose 0.3% to $1,733.48 an ounce.