- In cautious trading on Wednesday ahead of US inflation statistics that will influence investor expectations for additional Federal Reserve interest-rate hikes, US equities futures showed modest gains.
- After the underlying gauge fell for the fourth session on Tuesday as a result of micron technology inc. being the latest chipmaker to issue a warning about declining demand, the S&P 500 contracts increased by 0.2%. Nasdaq 100 futures increased by 0.3%. Tesla rose in the premarket following the largest-ever share sale by its CEO, Elon Musk. The Stoxx 600 index for Europe reversed a decline.
- Bonds were stable. Under the Fed's monetary-tightening strategy to fight inflation, the two-year treasury rate is about 50 basis points higher than the 10-year rate, an inversion that is considered to be the worst since 2000 and a warning sign of an impending recession.
- According to a report due out on Wednesday, the headline rate of consumer price inflation in the US decreased but remained high in July, while the core rate may have increased on an annual basis. Risk sentiment will be heavily influenced by how the statistics impact opinions of Fed tightening.