Markets Update: US Futures Fall Pre-Fed Minutes; Weak Yen; China’s Financial Pressure
Summary:
Ahead of Federal Reserve minutes, US equity futures witness a dip.
Chinese financial concerns deepen as yuan edges towards its lowest in 16 years.
The Japanese yen hits levels that prompted September’s intervention.
Details:
S&P 500, Nasdaq 100 contracts experienced fluctuations, with an overall negative bias.
Target Corp.’s shares surge in premarket trading due to a notable profit rebound, while Tesla faces a decline after another set of price reductions in China.
Amidst expectations of prolonged high interest rates, global bonds rally, pausing the recent streak of losses. UK inflation surpassing projections boosts the pound.
The July FOMC meeting minutes, set for release, are on traders’ radars.
Despite China’s attempts at economic stimulus, the yuan’s decline and market pessimism persist. Signals indicate traders anticipate bolder supportive actions.
Intel Corp.’s planned $5.4 billion acquisition of Israel’s Tower Semiconductor Ltd. hits a roadblock, missing Chinese regulatory approval.
Energy Transfer LP unveils plans to acquire Crestwood Equity Partners LP for $7.1 billion, aiming to expand its US pipeline system.
Week’s Key Events:
- Wednesday: US FOMC minutes, housing statistics, industrial output.
- Thursday: US preliminary unemployment claims, US Conf. Board leading index.
- Friday: Eurozone’s Consumer Price Index.
Market Statistics:
- Stock Futures: S&P 500, Nasdaq 100, Dow Jones all down by 0.2%; Stoxx Europe 600 and MSCI World index both decline by 0.3%.
- Currency: Bloomberg Dollar Spot Index remains stable; Euro stays at $1.0902; British pound advances to $1.2724; Japanese yen drops to 145.86 per dollar.
- Crypto: Bitcoin at $29,085.34 (down 0.3%); Ether at $1,820 (down 0.4%).
- Bonds: 10-year Treasury yield rises slightly to 4.22%; yields in Germany and Britain remain fairly consistent.
- Commodities: West Texas Intermediate crude at $81.17/barrel (up 0.2%); Gold at $1,931.70 an ounce (down 0.2%).
