Pre-open movers
U.S. stock futures traded higher in early pre-market trade on Wednesday after recording sharp losses on Tuesday following the release of inflation data for August. All the three major indices settled sharply lower, notching their biggest single-session percentage declines since June 2020.
The Producer Price Index for August will be released at 8:30 a.m. ET. Producer prices cooled higher than expected during July, declining 0.5% on the month. Analysts, meanwhile, are expecting producer prices declining 0.1% on the month, with year-over-year rates expected at 8.7%.
Investors are also awaiting earnings results from BRP Inc. (NASDAQ:DOOO) and Tsakos Energy Navigation Limited (NYSE:TNP), due to be released today.
Check out this: Market Volatility Jumps Following US CPI Data
Futures for the Dow Jones Industrial Average jumped 138 points to 31,241.00 while the Standard & Poor’s 500 index futures rose 22.75 points to 3,954.00. Futures for the Nasdaq index climbed 72.75 points to 12,109.25.
Commodities
Oil prices traded slightly higher as Brent crude futures rose 0.3% to trade at $93.49 per barrel, while US WTI crude futures rose 0.2% to trade at $87.49 a barrel. U.S. crude stockpiles increased by over 6 million barrels last week, according to the American Petroleum Institute. The Energy Information Administration’s weekly report on petroleum inventories in the U.S. is scheduled for release at 10:30 a.m. ET.
Gold futures slipped 0.2% to trade at $1,713.90 an ounce, while silver traded almost flat at $19.49 an ounce on Wednesday.
A Peek Into Global Markets
Europe Markets
European markets were mostly lower today. The STOXX Europe 600 Index fell 0.3%, London’s FTSE 100 fell 0.8% while Spain’s IBEX 35 Index gained 0.5%. The French CAC 40 Index fell 0.2%, while German DAX declined 0.3%.
Industrial production in the Eurozone dropped 2.3% month-over-month in July following a revised 1.1% increase in the previous month. Annual inflation rate in the UK fell to 9.9% in August from 10.1% in July.
Asia-Pacific Markets
Asian markets traded lower today. Japan’s Nikkei 225 fell 2.78%, Hong Kong’s Hang Seng Index fell 2.48% and China’s Shanghai Composite Index fell 0.8%. Australia’s S&P/ASX 200 fell 2.6%, while India’s S&P BSE SENSEX fell 0.2%.
Manufacturing production in Hong Kong climbed by 2.7% year-over-year in the second quarter. The annual wholesale price inflation rate in India fell to 12.41% in August from 13.93% in the earlier month. Industrial production in Japan increased 0.8% month-over-month in July, while Australian new home sales dipped 16.0% month-over-month in August.
Broker Recommendation
Berenberg downgraded Bristol-Myers Squibb Company (NYSE:BMY) from Buy to Hold and lowered the price target from $82 to $76.
Bristol-Myers Squibb shares rose 0.1% to $71.05 in pre-market trading.
Check out this: Bitcoin, Ethereum Record Losses Following US Inflation Data, Here Are Other Crypto Movers That Should Be On Your Radar Today
Breaking News
- Coinbase Global Inc (NASDAQ:COIN) said it has now fully resolved the issue of failing trades on its platform.
- The U.S. Food and Drug Administration granted Orphan Drug Designation to Genfit SA’s (NASDAQ:GNFT) drug candidate GNS5611 (ezurpimtrostat) for the treatment of cholangiocarcinoma.
- South Korean authorities have issued an arrest warrant for Terra (CRYPTO: LUNA) founder Do Kwon and five others in connection with the Terraform Labs case, Bloomberg reported on Wednesday.
- Conformis, Inc. (NASDAQ:CFMS) received 510(k) clearance from the U.S. Food and Drug Administration for its Actera Hip System.
