Extreme Investor Network offers a unique perspective on the latest developments in the finance world, providing readers with valuable insights and expert analysis. Today, we take a closer look at the day ahead in U.S. and global markets.
Just like Wall Street’s rapid recovery on Friday, Japanese stocks made a remarkable comeback on Tuesday after Tokyo markets reopened following a holiday. The Nikkei 225 surged by 3.5%, erasing last week’s losses and pushing the yen lower. This significant rebound brought the Nikkei back above its close on Friday, Aug 2, marking a return to stability in the region.
Japan’s parliament is set to convene a special session on Aug. 23 to discuss the Bank of Japan’s recent decision to raise interest rates for the second time, signaling more increases to come. The renewed sense of calm in global markets was also evident in Monday’s U.S. trading, with the VIX ‘fear index’ now close to its 30-year average, signaling a more sustainable level of volatility.
Investors are now turning their attention back to the U.S. inflation outlook as this week’s consumer and producer price updates are expected to shed light on the Federal Reserve’s next move. The Producer Price Index (PPI) is due today, with modest monthly gains forecasted for both headline and core measures. A decline in annual headline factory gate inflation is also expected, providing insights into the overall inflation trend.
Despite any potential fluctuations in energy prices, the Fed seems to have successfully anchored inflation expectations, potentially paving the way for rate cuts in September. U.S. consumers’ medium-term inflation expectations have eased, according to the New York Fed’s household survey, indicating a positive outlook for the economy.
In the earnings calendar, Home Depot takes the spotlight today, kicking off a week of updates from major retailers alongside the July retail sales report. Overseas, the British pound rose on unexpected drops in the UK’s unemployment rate, while the euro saw a decline following Germany’s ZEW sentiment index release.
In China, economic and credit concerns persist as Chinese banks extended fewer new yuan loans in July than expected, reflecting weak demand amidst a prolonged property downturn and job market uncertainties.
Key events that could impact U.S. markets later today include the US NFIB small business survey, July producer price index data, and speeches from Atlanta Federal Reserve President Raphael Bostic.
Stay tuned for more exclusive insights and analysis from Extreme Investor Network as we continue to monitor the latest developments in the finance world. For more information and expert advice on navigating the financial markets, visit our website today.