📆 Wednesday, September 11
► European markets edged higher with the Stoxx 600 climbing 0.3% as investors cautiously await the upcoming US inflation report. However, the UK’s GDP for July showed zero growth, with industrial production declining by 0.8%, indicating persistent economic challenges. Bond yields also moved lower, with the UK’s 10-year yield down by 5 basis points to 3.77%, and Germany’s yield falling by 4 basis points to 2.11%. Shares of Commerzbank AG soared over 17% during early European trading following the news that UniCredit Group acquired a 4.49% stake in Commerzbank from the German government. Shares of Zara’s parent company, Inditex rose more than 3% after it reported its first half results with net income jumping by 10.1% YoY, to €2.8 billion.
► US stock futures dropped on Wednesday morning ahead of the release of crucial CPI data. S&P 500 and Nasdaq futures fell by 0.25% and 0.30%, respectively. Investors are digesting the first presidential debate between Kamala Harris and Donald Trump, which seemed to dampen market sentiment and has been described as “exhausting” to watch by our Chief Analyst. However, analysts are mostly optimistic about the upcoming CPI data (12:30 UTC+0) which is expected to show moderating inflation. SmartTrader Chief Analyst Robert Lindner, however, expects that CPI data further decreases expectations for a larger (50-bps) rate cut. Forecasters expect the US CPI and the core gauge, excluding food and energy, to show another monthly increase of 0.2% for August. This keeps inflation in check with an annual core inflation rate likely at 3.2%.
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