📆 Wednesday, September 25
► European stocks edged lower, with the Stoxx 600 dropping by 0.1% as enthusiasm over China’s stimulus package began to fade. SAP tumbled after news surfaced that US officials are investigating the German software company for potentially conspiring to overcharge government agencies. Producer prices in Spain decreased by 1.3% year-on-year (deflation!), while Sweden saw a 1.2% increase in the same metric. Consumer confidence in France rose to 95.1 in September.
► US equity futures saw slight declines following yet another S&P 500’s record on Tuesday, with contracts for the S&P 500 down 0.15%. Investors are focused on fresh catalysts after last week’s 50 bps Federal Reserve interest-rate cut. Nvidia’s surge helped push US stocks higher, but weak consumer sentiment data and concerns over labor market strength have tempered enthusiasm. Investors are awaiting Fed Chair Jerome Powell’s comments and the PCE report later this week, the Fed’s preferred inflation gauge.
► Asian stocks continued their rally, supported by China’s aggressive stimulus measures. The Shanghai Composite rose 1.1%, with the central bank cutting its one-year medium-term lending facility rate by 30 basis points to 2%. Japan’s Nikkei declined 0.25% as the JPY steadied. In Australia, markets gained 0.05% after the release of data showing inflation slowed to a three-year low of 2.7% in August.
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