Monday September 12th


Dow futures rise as Wall Street looks ahead to key inflation data later this week

U.S. stock markets index futures rose Monday as Wall Street looks ahead to key inflation data to be released this week. Dow Jones Industrial Average futures were up 54 points, or 0.2%. S&P 500 futures were up 0.4%, and Nasdaq 100 futures gained 0.3%. The moves came after a winning week for U.S. stocks, as all three major averages snapped a three-week losing streak. The Dow added 2.6% on the week, while the S&P 500 gained 3.7%. The Nasdaq Composite was 4.1% higher. Stocks have been volatile ahead of the September meeting of the Federal Reserve, where the central bank is expected to deliver its third consecutive 0.75 percentage point rate hike in an effort to combat high inflation. Wall Street investors had been looking for signs that the size of future rate hikes might be smaller as inflation cools off, Fed Chair Jerome Powell last week reiterated that he is “strongly committed” to bringing down inflation. The European Central Bank announced its own large rate hike last week, which has helped cool the U.S. dollar’s recent rise. “We see the relief in equity prices and the recent broad Dollar correction continue into the week, as markets eye short-term peak central bank hawkishness and positioning is relatively defensive,” Citi strategist Ebrahim Rahbari said in a note to clients. This week, investors are looking ahead to the August consumer price index report, scheduled to be released Tuesday. The report is one of the last pieces of data on inflation the Fed will see ahead of its September meeting. Retail sales and industrial production reports will be released Thursday. Shares in the Asia-Pacific rose Monday on improved risk sentiment. The Nikkei 225 in Japan gained 1.16% to close at 28,542.11, while the Topix index advanced 0.75% to 1,980.22. Travel stocks in Japan rose on reports that border measures may be eased further. Australia’s S&P/ASX 200 also added 1.02% to end the session at 6,964.50. MSCI’s broadest index of Asia-Pacific shares outside Japan ticked 0.51% higher. Mainland China, Hong Kong and South Korea markets are closed for a holiday. Oil prices rose on Monday as Iranian nuclear talks appeared to hit obstacles and an embargo on Russian oil shipments loomed, with tight supply struggling to meet still robust demand. Brent crude futures rose 71 cents to $93.55 a barrel. U.S. West Texas Intermediate crude was up 50 cents at $87.29 a barrel, or 0.6%. Gold prices rose on Monday as the dollar fell to a more than two-week low, prompting investors to buy bullion, while markets eyed U.S. inflation data for further clues on Federal Reserve rate hikes. Spot gold was up 0.6% at $1,727 per ounce. U.S. gold futures rose 0.6% to $1,739. The dollar index hovered close to its lowest level since Aug. 26, making gold less expensive for holders of other currencies.