Market Summary
Fed Chair Warsh's Comments Ease Rate Hike Expectations: Fed Chair Kevin Warsh's restrained comments on inflation and the monetary policy outlook saw markets reduce the probability of an October rate hike to 15%, while also scaling back expectations for further tightening next year. Warsh reiterated his commitment to price stability and his optimistic outlook on artificial intelligence, highlighting the potential for significant supply-side gains in the US economy over the medium term.
Global Equities Extend Gains: Equities continued to recover as easing rate hike expectations supported investor sentiment. US equity futures pointed to a stronger open, with S&P 500 and Nasdaq 100 futures both rising 0.1%, while the MSCI Asia Pacific Index gained 1.4%. The dollar edged lower, while the US 10-year Treasury yield held steady at 5.08% and gold remained near $4,175 an ounce. Attention now turns to corporate earnings, with investors looking for signs that gains can broaden beyond the technology sector's largest companies.
Bank of England Signals Limited Inflationary Pressure: In the UK, Bank of England Governor Andrew Bailey said there was little evidence of sustained inflationary pressure influencing price- and wage-setting behaviour. Bailey also suggested that monetary policy remains restrictive, particularly given expectations for interest rate cuts before the Iran conflict earlier this year. Markets continued to price a 90% probability of a rate move in November.
Economic Calendar: Attention remains on corporate earnings announcements as investors assess whether the equity market recovery can broaden beyond technology heavyweights, alongside further developments in monetary policy expectations.
Economic Calendar
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Corporate Earnings Announcements
Key Market Moves Today
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S&P 500 Futures: +0.1%
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Nasdaq 100 Futures: +0.1%
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MSCI Asia Pacific Index: +1.4%
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US 10-Year Treasury Yield: 5.08%
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Spot Gold: Near $4,175
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WTI Crude: -0.7%
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