Futures Slip on Chinese Inflation Data
U.S. equity futures were slightly lower in overnight trade as Chinese inflation data revealed that the PBOC may have less room to engineer a soft-landing than previously thought. Data showed that consumer inflation accelerated in the previous month, spooking investors and creating fears that China will have to go through another rate hike cycle.
Top News
In other news around the markets:
Asian Markets
Asian shares were mixed overnight as Japanese shares rallied on stimulus hopes while Chinese shares fell on inflation fears. The Japanese Nikkei Index rose 1.4 percent while the Shanghai Composite Index fell 1.78 percent and the Hong Seng Index fell 0.39 percent. Also, the Korean Kospi fell 0.5 percent and Australian shares fell 0.29 percent.
European Markets
European shares were lower in early trade following weak industrial production data for various countries across the EU. The Spanish Ibex Index fell 0.4 percent and the Italian MIB Index slipped 0.52 percent in early European trade. Meanwhile, the German DAX fell 0.1 percent and the French CAC fell 0.49 percent while U.K. shares declined 0.05 percent.
Commodities
Commodities were weaker overnight following the worrying Chinese inflation data. WTI Crude futures fell 0.27 percent to $93.56 per barrel and Brent Crude futures fell 0.6 percent to $111.22 per barrel. Copper futures fell 0.73 percent to $368.20 per pound as investors worried that China will not grow as fast as expected, hampered by strong inflation. Gold was lower and silver futures fell 0.69 percent to $30.71.
Currencies
Currency markets were relatively tepid overnight with moves of major pairs constrained to tight ranges. The EUR/USD was slightly lower at 1.3268 and the dollar gained against the yen. Overall, the Dollar Index rose 0.08 percent on strength against the pound, the yen, and the Swiss franc.
Pre-Market Movers
Stocks moving in the pre-market included:
Earnings
Notable companies expected to report earnings Friday include:
Economics
On the economics calendar Friday, trade balance data and import and export prices are due out. Also, the Fed’s Charles Plosser is expected to speak and the Treasury is expected to release its periodic budget statement. Early Monday, look for the French budget statement and British inflation data to move markets.
Good luck and good trading.
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