July 21, 2024

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US Futures Slip With Focus on Key Inflation Data: Markets Wrap

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(Bloomberg) — US stock futures edged lower as investors braced for a print of the Federal Reserve’s key inflation metric, which will help identify the path forward for interest rates. Bitcoin’s rally extended past $63,000.

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Contracts for the S&P 500 and the tech-heavy Nasdaq 100 both retreated by about 0.3%. European stocks edged higher on another crowded day on the earnings calendar. Moncler SpA rallied after the Italian luxury company’s profit beat expectations. Air France-KLM slumped after reporting a fourth-quarter loss. Anheuser-Busch InBev slipped after missing analysts’ profit estimates.

Traders are braced for the US core personal consumption expenditure gauge data due later Thursday, which will likely highlight the bumpy path the Fed faces in achieving its 2% inflation target. The PCE reading is expected to validate recent commentary from central bank officials showing no rush to ease monetary policy.

In Asia, a gauge of the region’s equities rose following a rebound in Chinese shares. The yen climbed the most in more than a week against the dollar after Bank of Japan Board Member Hajime Takata signaled that the case for ending the negative interest rate policy is gaining momentum.

Bitcoin extended gains after surging above $60,000 for the first time in more than two years Wednesday, reflecting new demand from exchange-traded funds. The currency almost touched $64,000. The 2021 record high is just below $69,000.

Treasury yields ticked higher after a rally in bonds on Wednesday that saw the 10-year yield falling four basis points and the policy-sensitive two-year slipping six basis points.

New York Fed President John Williams said Wednesday the central bank has “a ways to go,” in its battle against inflation and Atlanta Fed chief Raphael Bostic urged patience in regard to policy tweaks.

Traders are currently pricing around 80 basis points of easing by year-end — almost in line with what officials in December…

2024-02-29 03:22:40

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