📆 Monday, August 12
► A semblance of calm has returned to the markets after last week’s volatility, driven by concerns over the Federal Reserve's timing on rate cuts. European futures advanced alongside US futures, reflecting a positive sentiment across the markets as investors prepare for a critical week filled with significant economic data releases. The Stoxx 600 index rose 0.2%. This week’s key data releases include the upcoming US CPI and retail sales data and Eurozone GDP and industrial production data.
► US stock futures rose modestly in pre-market trading as traders shifted their attention to the upcoming consumer price index (CPI) data expected on Wednesday, which is expected to have risen by 0.2% from June. This week’s data could provide clearer insights into the health of the US economy and influence the Federal Reserve's policy decisions. Despite recent fears of slow rate cuts, the market continues to price in potential sharp interest rate cuts – including a more than 50% chance of a large 50 bps rate cut next month. Comments from Fed Governor Michelle Bowman over the weekend indicated that inflation risks remain in the eyes of the FOMC, which could impact the Fed's decision-making process.
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