📆 Tuesday, August 13
► European equities struggled to gain ground after gains in Asia as investors continue to wait for crucial US data that could guide the Federal Reserve's next policy moves. This was compounded by mixed economic and sentiment data. The Stoxx Europe 600 opened positively but fell back to a flat level. GBP gained after data revealed a surprise fall in the UK unemployment rate to 4.2% in June, raising doubts about the pace of monetary easing by the Bank of England. Meanwhile, Spain reported a fall in inflation to 2.8% in July from 3.4% in June, in line with market expectations. The German ZEW Economic Sentiment Index fell sharply to 19.2 in August, compared to expectations of 38.0, indicating that the economic outlook for Germany continues to deteriorate. The latest survey showed the sharpest fall in economic expectations in the last two years and shows how negative and poor expectations for the German economy and economic outlook are.
► US equity futures point to a positive opening, with the S&P 500 futures up over 0.25% and Nasdaq futures rising by over 0.4%, as investors look ahead to the US Consumer Price Index (CPI) release on Wednesday. The CPI data will be crucial in determining the Federal Reserve's next steps, particularly in the context of the recent crude oil price rally and the looming producer-price data expected later today. Monday saw mixed results on Wall Street, with major indices struggling to maintain momentum following last week’s volatile sessions.
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