Global Markets:
● Asian Stock Markets : Nikkei up 0.29%, Shanghai Composite up 0.36% Hang Seng down 0.27% ASX down 0.74%
● Commodities : Gold at $4,483.05 (0.14%) Silver at $67.637 (1.33%), Brent Oil at 97.50 (0.52%), WTI Oil at 92.89 (1.54%)
● Rates : US 10-year yield at 4.776, UK 10-year yield at 5.1802, Germany 10-year yield at 3.3842
News & Data:
● (JPY) Final GDP Price Index y/y 2.6% to 2.6% expected
Markets Update:
U.S. stock futures opened the shortened trading week lower as investors monitored escalating tensions in the Middle East and renewed trade friction between the U.S. and Canada.
Dow Jones Industrial Average futures fell 308 points, or 0.6%, while S&P 500 futures declined 0.2%. Nasdaq-100 futures edged 0.1% higher. U.S. markets were closed Monday for the Labor Day holiday.
Asian markets were mixed on Tuesday. South Korea’s Kospi gained 1.66% and Japan’s Nikkei 225 rose 0.33%. Hong Kong’s Hang Seng dropped 0.65%, while mainland China’s CSI 300 surged 9.27%. Australia’s S&P/ASX 200 slipped 0.5%.
Oil prices climbed to six-week highs after Iran and the U.S. exchanged strikes over the weekend. Brent crude rose 1.1% to $97.31 a barrel, while West Texas Intermediate gained 1.3% to $92.66. Persistent oil gains are raising concerns about inflation and putting upward pressure on Treasury yields.
The 10-year Treasury yield recently reached its highest level since November 2023, while the two-year yield touched a January 2025 high.
Markets are also awaiting U.S. wholesale and consumer inflation data later this week ahead of the Federal Reserve’s policy meeting next week. Investors currently see a 60% probability of a 25-basis-point rate hike.
Meanwhile, Canada’s retaliatory tariffs on roughly $20 billion of U.S. goods are set to take effect Tuesday, adding another source of uncertainty for markets.
Upcoming Events:
● 1:15 PM GMT – GBP Monetary Policy Report Hearings
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