- US equity futures gained as investors awaited Nvidia earnings, the chipmaker at the centre of the artificial intelligence hoopla.
- Contracts on US equity indices increased, with the Nasdaq 100 up 0.4%. Nvidia gained 1% in premarket trade after erasing gains that briefly lifted it to an all-time high on Tuesday.
- Europe led a global bond rally as signs of a eurozone slowdown pushed traders to reduce interest-rate hike forecasts. The euro fell following the release of the region's PMI statistics, while the STOXX 600 stock index pared gains. UK PMI data also dissapointed, leading to Sterlings decline.
- Markets are also marking time ahead of Federal Reserve Chair Jerome Powell's appearance at the Jackson Hole Economic Policy Symposium on Friday. The robust US economy has persuaded investors to expect the Fed to keep borrowing costs high. Treasury yields dipped on Wednesday, mirroring European market movements.
- Traders pare ECB wagers and the probability of a 25 BPS September hike now 40% post worse than expected German PMI data.
- BofA sees Japan utilizing intervention to control the yen in the short term.
- Traders ease BoE bets, peak priced at 5.90% versus 6.06% prior.
