📆 Tuesday, August 20
► European stocks edged higher as the Stoxx 600 followed Monday's gains on Wall Street. Governing Council member Olli Rehn suggested that growing risks to the economic outlook may prompt the ECB to adjust its policy at the next meeting. German producer price inflation as well as Eurozone inflation rate (final) came in-line with expectations having little impact on risk sentiment. However, both headline and core inflation in the Eurozone remain sticky with July headline inflation at 2.6% in July (YoY) vs. 2.5% in June and core inflation at 2.9% – still above the ECB 2% target.
► US futures also extend gains, continuing the positive momentum from an eight-day winning streak in the S&P 500. Traders are holding back major moves as they await Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium on Friday for clues on future interest rate cuts. Yesterday, Palo Alto Networks reported stronger-than-expected earnings, with shares climbing 2.7% after the cybersecurity company beat both earnings and revenue estimates, driven by robust subscription and support revenue growth. On the corporate front, a significant potential acquisition can be highlighted as Canadian multinational operator of convenience stores Alimentation Couche-Tard made a preliminary proposal to acquire 7-Eleven owner Seven & i Holdings, potentially worth over ¥5.63 trillion (~$38.4 billion).
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