Market Summary
Fed Hike Bets Ease Following Softer Core PCE: Yesterday’s downside surprise in US core PCE provided some relief from the market’s hawkish Fed positioning. The dollar initially fell sharply, while the probability of an October rate hike dropped to 36%. Gold rose to around $4,190 an ounce.
Yen Falls as BOJ Minutes Disappoint: The yen underperformed its peers after minutes from the Bank of Japan’s September meeting disappointed investors hoping for a hawkish tone that would reinforce expectations of another consecutive rate hike. USD/JPY reached a high of 158.39, with the yen falling 0.6% against the dollar.
Technology Optimism Lifts Equity Futures: Upbeat forecasts across the technology sector supported equities, leaving Nasdaq 100 futures 1.2% higher and S&P 500 futures up 0.6%. The dollar also regained ground, while Brent crude fell below $98 a barrel during Asian trading. Treasuries remained steady as attention turned to Friday’s non-farm payrolls report and global manufacturing PMI releases throughout the day.
Economic Calendar
- Global Manufacturing PMIs
- US Non-Farm Payrolls on Friday
Key Market Moves Today
- S&P 500 Futures: +0.40% (7,748)
- Crude Oil: +0.48% ($90.88)
- Spot Gold: +0.48% ($4,175)
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