US markets remain cautious ahead of key inflation data

Market Reports

by Peter Milios


Markets continued to drift as investors stay on the sideline ahead of key inflation data due out on Friday US time.

The S&P 500 just managed to finish in positive territory closing up 0.09 per cent. The Nasdaq closed 0.30 per cent higher, while the Dow Jones closed 0.09 per cent higher.

Turning to US sectors, the best performing sectors was Real Estate which closed up 0.93 per cent. The worst performer was Consumer Staples which finished down 0.5 per cent

Investors and traders remain focused on the release of May’s core personal consumption expenditures price index due out Friday US time. The data point is one of the Fed’s preferred measures of inflation. Economists polled by Dow Jones expect core PCE rose 0.1 per cent month over month and 2.6 per cent from the year-earlier period.

Investors remain hopeful the report will show easing pricing pressures which in turn will allow the Fed to commence a rate cutting cycle.

In company news, Micron shares fell more than 7 per cent after the chipmaker issued underwhelming fourth-quarter revenue guidance. Levi Strauss dropped 15.4 per cent after the jeans maker’s latest quarterly revenue disappointed investors. Walgreens Boots Alliance collapsed more than 22 per cent after cutting its full-year outlook and issuing lower-than-expected earnings in the previous quarter.

In European market news, the pan-European Stoxx 600 closed down 0.4 per cent lower. Shares in retailer H&M plunged 13 per cent after it reported a smaller-than-expected rise in second-quarter profits and cast doubt over its full-year profit margin target.

In EU rates news Sweden’s Central Bank kept rates unchanged on Thursday but signalled that it expects to resume easing again, with up to three cuts in the second half of the year.  

Futures

The SPI futures are pointing to a 0.3 per cent gain.

Currency

One Australian dollar at 7.35am was buying 66.48 US cents.

Commodities

Gold has added 1.01 per cent. Silver was flat. Copper has lost 0.42 per cent. Oil has added 0.84 per cent.

Figures around the globe

European markets closed mixed. London’s FTSE fell 0.56 per cent, Frankfurt added 0.30 per cent, and Paris closed 1.03 per cent lower.

Turning to Asian markets, Tokyo’s Nikkei lost 0.82 per cent, Hong Kong’s Hang Seng fell 2.06 per cent while China’s Shanghai Composite closed 0.90 per cent lower.

Yesterday, the Australian share market closed 0.30 per cent lower at 7,759.60.

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

Disclaimer

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