Wednesday October 12, 2022: $138.34 -($0.64) -(0.46%)
Oct 12, 2022 1:11:14 GMT -8
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Post by Dave on Oct 12, 2022 1:11:14 GMT -8
Good morning again. We have a green pre-market this morning at +0.73% at this moment. Is it time for a bounce?
Stock futures rise slightly ahead of key inflation data, Fed minutes
Stock futures rise slightly ahead of key inflation data, Fed minutes
Investors are looking forward to the September producer price index, a gauge of final-demand wholesale prices, due to be released by the Bureau of Labor Statistics on Wednesday. Economists surveyed by Dow Jones are expecting headline PPI to increase 0.2%, after declining 0.1% in the previous month.
The minutes from the Federal Reserve’s September meeting will also be released Wednesday. While Fed Chairman Jerome Powell has acknowledged that aggressive interest rate increases could be painful, the central bank will continue to charge forward in its fight to lower inflation.
“Powell has repeated, in what has become his mantra, that without price stability we cannot have a strong economy or a strong labor market,” said Quincy Krosby, chief global strategist for LPL Financial. “Investors are concerned that restrictive monetary policy, that is, tighter financial conditions, could lead to the kind of financial accident that dries up liquidity and delivers more harm to the global economy.”
Elsewhere, PepsiCo will report its quarterly earnings before the bell Wednesday. Bank earnings will kick off later in the week. Despite lower expectations, S&P 500 earnings are still expected to grow.
UK economy shrinks by 0.3% in August
U.K. GDP contracted by 0.3% month-on-month in August, the Office for National Statistics said Wednesday, below expectations for stagnation from a Reuters poll of economists.
The fall in activity was driven partly by manufacturing weakness and maintenance work on North Sea oil and gas facilities, the ONS said, while both production and services activity fell.
July GDP growth was revised down to 0.1% from a previous estimate of 0.2%.
“While this figure is not what the country wants to see, it won’t make much of a difference to the path we are already on. The Bank of England (BoE) will continue to increase its base rate at it battles to tame runaway inflation,” said Marcus Brookes, chief investment officer at Quilter Investors.
“The BoE continues to face the incredibly difficult task of guiding the country through this uncertain period where it finds itself in a rock and a hard place by raising rates to meet inflation but embarking on a gilt buying operation to help steady the markets following the turmoil precipitated by the mini budget.”
The minutes from the Federal Reserve’s September meeting will also be released Wednesday. While Fed Chairman Jerome Powell has acknowledged that aggressive interest rate increases could be painful, the central bank will continue to charge forward in its fight to lower inflation.
“Powell has repeated, in what has become his mantra, that without price stability we cannot have a strong economy or a strong labor market,” said Quincy Krosby, chief global strategist for LPL Financial. “Investors are concerned that restrictive monetary policy, that is, tighter financial conditions, could lead to the kind of financial accident that dries up liquidity and delivers more harm to the global economy.”
Elsewhere, PepsiCo will report its quarterly earnings before the bell Wednesday. Bank earnings will kick off later in the week. Despite lower expectations, S&P 500 earnings are still expected to grow.
UK economy shrinks by 0.3% in August
U.K. GDP contracted by 0.3% month-on-month in August, the Office for National Statistics said Wednesday, below expectations for stagnation from a Reuters poll of economists.
The fall in activity was driven partly by manufacturing weakness and maintenance work on North Sea oil and gas facilities, the ONS said, while both production and services activity fell.
July GDP growth was revised down to 0.1% from a previous estimate of 0.2%.
“While this figure is not what the country wants to see, it won’t make much of a difference to the path we are already on. The Bank of England (BoE) will continue to increase its base rate at it battles to tame runaway inflation,” said Marcus Brookes, chief investment officer at Quilter Investors.
“The BoE continues to face the incredibly difficult task of guiding the country through this uncertain period where it finds itself in a rock and a hard place by raising rates to meet inflation but embarking on a gilt buying operation to help steady the markets following the turmoil precipitated by the mini budget.”