{"id":160124,"date":"2023-06-13T08:00:00","date_gmt":"2023-06-13T00:00:00","guid":{"rendered":"https:\/\/www.mediaintel.asia\/?p=919781"},"modified":"2023-06-13T08:00:00","modified_gmt":"2023-06-13T00:00:00","slug":"before-the-bell-futures-gain-ahead-of-u-s-inflation-data","status":"publish","type":"post","link":"https:\/\/www.chinalegalblog.com\/en\/2023\/06\/13\/before-the-bell-futures-gain-ahead-of-u-s-inflation-data\/","title":{"rendered":"Before the Bell: Futures gain ahead of U.S. inflation data"},"content":{"rendered":"
\"MediaIntel.Asia\"<\/a><\/div>\n

Equities
\nWall Street futures edged higher early Tuesday with key U.S. inflation data due before the start of trading. Major European markets were positive. TSX futures were up.
\nIn the early premarket period, Dow, S&P and Nasdaq futures all saw gains. All three finished in positive territory on Monday with the Nasdaq popping 1.5 per cent while the S&P 500 added nearly 1 per cent. Both the S&P and Nasdaq managed their best closing levels yesterday since last spring. Canada\u2019s S&P\/TSX Composite Index closed yesterday up 0.15 per cent, helped by gains in the tech sector.
\nTuesday\u2019s key event for markets will be the release of May inflation figures. The report, which is expected to show a pullback in price pressures, comes one day before the Federal Reserve\u2019s interest rate decision.
\n\u201cToday\u2019s May [U.S.] CPI numbers are expected to see another big slowdown in the headline number to 4.1 per cent, with core prices expected to slow from 5.5 per cent to 5.3 per cent,\u201d Michael Hewson, chief market analyst with CMC Markets U.K., said.
\n\u201cIt is in core prices that we might see some nervousness for markets ahead of [Tuesday\u2019s] CPI numbers. If we don\u2019t see a slowdown in core prices, then that might introduce some nervousness that might prompt the Fed to hike again tomorrow instead of the pause that is currently being priced.\u201d
\nRight now, markets have priced in a more than 70-per-cent chance of the Fed holding steady on rates in Wednesday\u2019s policy announcement.
\nOn the corporate side, shares of Oracle were up more than 4 per cent in premarket trading after the cloud and software company beat fourth-quarter revenue estimates and forecast a positive first quarter. Oracle forecast total revenue to rise 8 per cent to 10 per cent in the first quarter. Analysts on average were expecting growth of about 8 per cent, Reuters reported.
\nIn Canada, The Globe\u2019s Nicolas Van Praet reports Rio Tinto PLC is investing $1.4-billion to expand its aluminum manufacturing operations in Saguenay, Que., breathing new life into the industrial centre after years of uncertainty. The mining giant said Monday it will build out a smelter that uses lower-carbon AP60 technology at its Complexe Jonqui\u00e8re site, adding 96 new pots to the existing 38 and increasing capacity to about 220,000 metric tonnes of primary aluminum per year.
\nOverseas, the pan-European STOXX 600 was up 0.30 per cent in morning trading. Britain\u2019s FTSE 100 gained 0.20 per cent. Germany\u2019s DAX and France\u2019s CAC 40 advanced 0.36 per cent and 0.49 per cent, respectively. The European Central Bank is scheduled to release its next rate decision on Thursday. That central bank is expected to hike rates again by a quarter percentage point.
\nIn Asia, Japan\u2019s Nikkei closed up 1.8 per cent, topping the 33,000 level for the first time in more than three decades. Hong Kong\u2019s Hang Seng gained 0.60 per cent.
\nCommodities
\nCrude prices recouped some of the previous session\u2019s steep losses as traders await Wednesday\u2019s Fed rate decision.
\nThe day range on Brent was US$71.94 to US$72.87 in the early premarket period. The range on West Texas Intermediate was US$67.15 to US$67.89. Both benchmarks were up more than 1 per cent early Tuesday morning after losing US$3 a barrel on Monday.
\n\u201cWith every energy trader buckling up for a massive week of central bank rate decisions and important economic data, volatile price action should be expected,\u201d OANDA senior analyst Ed Moya said.
\n\u201cOil could get many conflicting signals this week as we are expecting a hawkish skip by the Fed, another ECB rate hike and a signal for more tightening, possibly a technical recession for New Zealand, and a growing case for easing by the People\u2019s Bank of China.\u201d
\nHe added that the global economic outlook could mean more demand weakness ahead \u201cwhich could support oil prices remaining under pressure unless OPEC+ signals and delivers on more production cuts.\u201d
\nLater Tuesday, markets will get the first of two weekly U.S. inventory reports, with fresh numbers from the American Petroleum Institute. More official government figures are due Wednesday morning.
\nIn other commodities, gold prices saw tentative gains, helped by a softer U.S. dollar.
\nSpot gold rose 0.3 per cent to US$1,962.59 per ounce by early Tuesday. U.S. gold futures gained 0.3 per cent to US$1,975.80.
\n\u201cWith stocks in bull market territory, demand for safe-havens has disappeared,\u201d Mr. Moya said.
\n\u201cGold either needs investors to get nervous about earnings, disinflation trends to improve, or for the PBOC to send a strong message that they will energize growth.\u201d
\nCurrencies
\nThe Canadian dollar was slightly firmer in early trading as its U.S. counterpart saw a modest decline against a basket of global currencies.
\nThe day range on the loonie was 74.74 US cents to 74.96 US cents in the early premarket period. As of early Tuesday morning, the Canadian dollar had gained 0.94 per cent against the greenback over the last month.
\nThere were no major Canadian economic releases due Tuesday.
\nOn world markets, the U.S. dollar index, which weighs the greenback against a group of currencies, was down 0.3 per cent at 103.27. The index has lost about 0.8 per cent over the past month.
\nElsewhere, the euro was up 0.42 per cent to $1.08 on Tuesday, after touching its highest since May 23 earlier in the session at US$1.081, according to figures from Reuters.
\nBritain\u2019s pound was up 0.43 per cent at US$1.257 after a stronger-than-expected reading on employment prompted traders to bet the Bank of England would have to raise interest rates further than previously expected. Still, it remained below the one-month peak of US$1.26 hit on Monday, Reuters reported.
\nIn bonds, the yield on the U.S. 10-year note was lower at 3.726 per cent in the predawn period.
\nMore company news
\nToyota will introduce high-performance, solid-state batteries and other technologies to improve the driving range and cut costs of future electric vehicles (EVs), the automaker said on Tuesday, a strategic pivot that sent its shares higher. The Japanese giant\u2019s technology roadmap, covering aspects as varied as next-generation battery development and a radical redesign of factories, amounted to the automaker\u2019s fullest disclosure of its plan to compete in the fast-growing market for EVs where it has lagged rivals led by Tesla.
\nEconomic news
\n(6 a.m. ET) U.S. NFIB Small Business Economic Trends Survey for May.
\n(8:30 a.m. ET) U.S. CPI for May.
\nAlso: The two-day U.S. Fed meeting begins
\nWith Reuters and The Canadian Press<\/p>\n

This data comes from MediaIntel.Asia's Media Intelligence and Media Monitoring Platform<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Equities
\nWall Street futures edged higher early Tuesday with key U.S. inflation data due before the start of trading. Major European markets were positive. TSX futures were up.
\nIn the early premarket period, Dow, S&P and Nasdaq futures all saw ga…<\/p>\n","protected":false},"author":253,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[669,692,144,586,693,1607,194,78,1284,1542,1026],"tags":[1768,10318,6389,10352,3760,10315,3563,7571,7293,7327,10392,3479,6944,1788],"class_list":["post-160124","post","type-post","status-publish","format-standard","hentry","category-bank","category-canada","category-china","category-economy","category-japan","category-manufacturing","category-news-chinese-law","category-software","category-stock-market","category-technology","category-toyota","tag-bank-of-china","tag-dollar","tag-electric-vehicle","tag-european","tag-gold","tag-media-intelligence","tag-new-zealand","tag-oil","tag-oracle","tag-revenue","tag-signal","tag-stocks","tag-tesla","tag-texas"],"_links":{"self":[{"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/posts\/160124","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/users\/253"}],"replies":[{"embeddable":true,"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/comments?post=160124"}],"version-history":[{"count":1,"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/posts\/160124\/revisions"}],"predecessor-version":[{"id":160125,"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/posts\/160124\/revisions\/160125"}],"wp:attachment":[{"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/media?parent=160124"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/categories?post=160124"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/tags?post=160124"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}