MORNING BID AMERICA-Inflation obscures everything
What's important in U.S. and Global Markets Today By?Mike Dolan Editor-at-Large Finance and Markets. It's inflation-day stateside, a moment of importance?for Federal Reserve thought, and for the nervy bonds markets. Fair enough, the consumer price index is only one of three "inflation" days each month. Tomorrow, the Fed will release its preferred PCE gauge and tomorrow the producer price report. CPI will begin to shape the picture.
Below, I'll go into more detail. Check out my mid-week article, in which I discuss Europe’s unexpected performers, Japan’s euro debt purchase, and why inflation monitors should be concerned about rising populism. Listen to the Morning Bid podcast where we talk about CoreWeave results, and much more. Subscribe to the Morning Bid daily podcast and hear our journalists discuss the latest news in finance and markets seven days a weeks.
INFLATION OBSCURES EVERYTHING With headline and core annual inflation rates expected a little lower, today's report could chime with the softer July job numbers last week to dampen speculation about a Fed rate increase next month. The markets are currently pricing in a 50-50 chance of a rate hike next month.
The bond market was calmed by the strong demand for the 3-year Treasury notes auctioned on Tuesday. Today, 10-year Treasury notes will be sold. The rise in oil price this week?will not help, even though it will be evidently not captured in consumer inflation in July. Brent crude is still hovering around $90 per barrel due to the impasse in Iran negotiations and the Houthis' attacks in the Red Sea. CoreWeave, a U.S.-based tech company, surged by 15% overnight after exceeding second-quarter revenue expectations. The AI cloud company upgraded its demand projection, citing an order backlog exceeding $100 billion for the second quarter. Super Micro Computer's shares rose 7% as its sales forecast was also better than expected. Foxconn of Taiwan, the largest contract electronics manufacturer in the world, beat analyst expectations by 35%. Norway's $2.3 billion sovereign wealth fund is the largest in the world and has posted a record profit for the first six months of the year. Wall Street futures were?up early on Wednesday. A nearly 4% rise in South Korea's KOSPI boosted Asian shares.
Chart of the Day Near-record inventories, technological advancements and the rise of key exporters like Brazil and Russia has made the global food systems more resilient to the "super" El Nino this year than past events.
According to the U.N. Food and Agriculture Organization, since 1980, world farm production has exceeded consumption and population growth. Changes have been driven primarily by the use of?higher yielding crop varieties and increased fertilizer, as well as improved irrigation, crop protection and crop protection.
Watch today's events
EDT), 10-year note auction (1 p.m. EDT), 10-year note auction (1 p.m. EDT)
* U.S.?corporate earnings: Cisco Systems
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(source: Reuters)
