U.S. index futures registered a decline in pre-market trading this Thursday, ahead of the release of an important inflation report, which could reinforce expectations of an interest rate cut as early as September.
At 5:39 AM, Dow Jones futures (DOWI:DJI) fell 50 points, or 0.12%. S&P 500 futures retreated 0.11%, and Nasdaq-100 futures lost 0.10%. The 10-year Treasury yield stood at 4.277%.
In the commodities market, oil prices rose due to a drop in crude oil inventories following increased refinery processing in the U.S. and a reduction in gasoline inventories, indicating stronger demand. West Texas Intermediate crude for August rose 0.16% to $82.23 per barrel. Brent crude for September increased 0.26%, near $85.30 per barrel. The most traded iron ore contract on the Dalian Commodity Exchange (DCE) rose 0.8% to $113.9 per metric ton.
On the U.S. economic calendar, the Department of Labor will release the June Consumer Price Index (CPI) at 08:30 AM. Economists expect the annual consumer price growth rate to slow to 3.1% in June, from 3.3% in May, while the annual core consumer price growth rate is expected to remain at 3.4%. At the same time, data on unemployment insurance claims for the week ending last Saturday will also be released.
Asia-Pacific markets mostly rose on Wednesday, except for South Korea’s Kosdaq, which fell 0.71%. The Kospi increased by 0.81%. Hong Kong’s Hang Seng saw a rise of 1.96%. Australia’s S&P/ASX 200 climbed 0.93%. In China, the CSI 300 and the Shanghai Composite rose 1.14% and 1.06%, respectively. Japan’s Nikkei 225 surpassed the 42,000 mark for the first time, closing up 0.94%.
Annual machinery orders in Japan grew 10.8%, exceeding expectations, while monthly orders fell 3.2%. In India, Japanese automaker Toyota Motor (NYSE:TSM) benefited from tax exemptions in Uttar Pradesh, reducing hybrid car prices by 10%.
European markets are on the rise, driven by consumer goods stocks, while investors await the U.S. inflation reading. In the UK, the economy grew 0.4% in May, surpassing the forecast of 0.2% and recovering from stagnation in April. The pound rose 0.1% against the dollar, reaching its highest level in four months. Last week, Goldman Sachs (NYSE:GS) raised its growth forecast for the UK following the Labour Party’s election victory.
U.S. stocks saw strong gains throughout Wednesday’s trading session. The S&P 500 closed up 1.02%, above 5,600 points for the first time in history, while the Dow Jones and Nasdaq posted gains of 1.09% and 1.18%, respectively. The rally was driven by the strength of tech stocks and optimism about interest rates ahead of the inflation data release. Among individual stocks, the rise in tech shares was boosted by an unexpected increase in Taiwan Semiconductor Manufacturing‘s (NYSE:TSM) second-quarter sales, resulting in a 3.5% increase in the company’s shares.
In quarterly reports, PepsiCo (NASDAQ:PEP), Delta Air Lines (NYSE:DAL), Conagra Brands (NYSE:CAG), Bank7 Corporation (NASDAQ:BSVN), and Methode Electronics (NYSE:MEI) will report before the market opens.
After the close, numbers from Vista Energy (NYSE:VIST) will be awaited.