📆 Wednesday, August 29
â–º Germany's 10-year yield rose by five basis points to 2.56% as inflation indications from North Rhine-Westphalia, Germany's largest state and considered early indicator for German inflation, pointed to an overall rise in German inflation. Investors await the official inflation rate numbers later today (12:00 UTC+0).
â–º Recent US job and consumer-confidence metrics might suggest a halt to the Federal Reserve's tightening. Yesterday's US JOLTs data showed that July witnessed significantly fewer job openings at 8.827M (vs. expected 9.465M), with the previous month's figures revised downward by over 400K jobs (hitting a 2-1/2-year low). This is a positive indication that the labor market is easing up. It's increasingly likely that the Fed will pause rates again in September to wait for more data. More labor market data is due today in the form of the ADP employment change – an often unreliable indicator, but one that may prolong positive sentiment and raise expectations for soft NFP data on Friday.
â–º US equity futures are currently trading flat, even though the S&P 500 jumped significantly on Tuesday. This rise was caused by optimism surrounding the Federal Reserve's potential pause on interest-rate hikes in the upcoming month. Notably, the Nasdaq rose by 1.74%, the S&P 500 by 1.45%, and the Dow Jones by 0.85%.
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