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Yahoo
9 hours ago
- Business
- Yahoo
Finance week ahead: Jackson Hole Symposium, UK inflation, Walmart, Palo Alto Networks and Baidu
Earnings season is winding down but there are still a number of companies due to report, along with key economic data and events on both sides of the Atlantic – including the Jackson Hole Symposium. This year's Jackson Hole Symposium will see central bankers from around the world gather to discuss economic policy – an event that will be closely watched by investors for any signals on the US Federal Reserve's plans for future interest rate cuts. Back in the UK, the focus will be on the latest inflation data, which has been ticking higher over the past couple of months. In terms of earnings releases, investors will be looking at results from US retail giant Walmart (WMT), which is considered a barometer for consumer sentiment. In the tech sector, US cybersecurity giant Palo Alto Networks (PANW) is set to report, with the stock having seen a couple of analyst ratings upgrades this week. China's Baidu ( BIDU) is another major tech company scheduled to report, having recently struck a deal with Uber (UBER) to deploy its autonomous cars on the ride-hailing platform across markets outside of the US and mainland China. Here's more on what to look out for: Jackson Hole Symposium – Takes place from Thursday 21 August to Saturday 23 August The theme for this year's Jackson Hole event is "Labor Markets in Transition: Demographics, Productivity, and Macroeconomic Policy". This comes amid concerns about a cooling labour market, as economic uncertainty sees firms put off hiring decisions. Central bankers keep a close eye on labour market data, which includes payroll numbers, unemployment rates, job vacancies and wage growth. This data helps inform their decisions on interest rates, as they seek to balance maintaining labour market health, with ensuring inflation continues to ease to the widely used 2% target. This has been more challenging amid fears that US president Donald Trump's tariffs could weigh on economic growth but also drive inflation higher. Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "Although the effect of Trump's tariffs on monetary policy will be the undercurrent theme, investors will be looking specifically for clues as to the Fed's inclination to cut interest rates going forward." Read more: Analysts' top emerging market fund and trust picks "Bets on a cut in September have increased sharply following a stable inflation reading for July and there will focus on what could lie ahead for borrowing costs," she said. Data released on Tuesday showed that "core" inflation rose 0.3% in July, surpassing June's 0.2% uptick. On an annual basis, the core consumer prices index (CPI) reading came in at 3.1%, up from 2.9% in June. Another inflation measure, the producer price index (PPI) came in hotter than expected in July, according to figures released on Thursday. US PPI for July showed inflation for businesses rose 0.9% over the prior month, well ahead of the 0.2% increase that was forecast. On an annual basis, prices rose 3.3%, which was also ahead of the 2.5% expected. This data dented investor hopes of a bigger 50-basis-point interest rate cut by the Fed. In addition, Streeter said: "How to bolster productivity in an era of demographic change will also be a big focus of discussions, with labour markets around the world in a state of upheaval as population changes, tougher immigration laws and AI developments are set to be hugely disruptive in the years to come." UK consumer price inflation – Data due out on Wednesday 20 August Following a year-on-year uptick in the UK consumer prices index (CPI) to 3.6% in June from 3.4% in May, Streeter said that there is set to be a "steamier inflation reading for July". "The Bank of England is now forecasting that CPI will hit a peak of 4% in September so, for now, it looks like the only way is up for prices," she said. "Barclaycard data has shown that there was an uplift in card spending in July, especially around events like the Oasis tour," she added. "The hot but stormy weather also led to a spurt in clothing purchases. Wage inflation has remained sticky." Office for National Statistics (ONS) data, released on Tuesday, showed that annual wage growth excluding bonuses came in at 5% in April to June, unchanged from the previous three months. Read more: What are bitcoin ETNs? "Although pay growth has slowed, it's now static and is still outstripping inflation, so there's a risk that firms will pass on heavier costs as higher prices," said Streeter. "Unless there's a marked and unexpected fall in inflation, the Bank of England looks set to stay cautious and delay another interest rate cut at least November or December." Sanjay Raja, senior economist at Deutsche Bank ( said in a note on Friday that his team expect headline CPI to rise to 3.8% in July. "July inflation will likely see price momentum rise further into uncomfortable territory," he said. Walmart (WMT) – Releases second quarter earnings on Thursday 21 August As the largest retailer in the US, Walmart (WMT) is consider to act as a bellwether for consumer health, so it's earnings are closely watched by investors. Shares are up more than 11% year-to-date but edged lower after Walmart released a mixed set of first quarter results in May. Walmart (WMT) posted first quarter revenue of $165.5bn (£122.02bn) , which was up 2.5% from the same period last year, though this missed Wall Street expectations of $166.02bn. Adjusted earnings per share grew 1.7% year over year to $0.61, beating estimates of $0.58. US same-store sales also beat expectations with a 4.5% increase, led by health and wellness, and groceries. However, the retailer signalled that there could be more pain ahead. In an earnings call, Walmart (WMT) CEO Doug McMillon said: "We will do our best to keep our prices as low as possible, but given the magnitude of the tariffs, even at the reduced levels announced this week, we aren't able to absorb all the pressure given the reality of narrow retail margins." Stocks: Create your watchlist and portfolio John David Rainey, chief financial officer of Walmart (WMT), said in the earnings release that the company had decided to hold off on providing a specific range of guidance for operating income growth and earnings per share for the second quarter, given the "dynamic nature of the backdrop". Walmart (WMT) did guide to net sales growth of 3.5% to 4.5% for the quarter, based on the $167.8bn it reported a year ago. AJ Bell's (AJB.L) investment director Russ Mould and head of financial analysis Danni Hewson said that analysts expect a headline figure for net sales of $174bn. "That turns into a consensus analysts' forecasts for [net profit in] the second quarter of $5.8bn, and a headline earnings per share (EPS) figure of $0.72, up from $0.67 a year ago," they said. "For the full year to January 2026, Walmart has thus far guided to a net sales increase on a constant currency basis of 3% to 4% and analysts' headline estimate for the top line is $699bn," they added. "Management expects full-year EPS to come in between $2.50 and $2.60, and the current analysts' consensus is $2.58." Palo Alto Networks (PANW) – Releases fourth quarter earnings on Monday 18 August Ahead of the release of its fourth quarter earnings, Palo Alto Networks (PANW) has seen two analyst rating upgrades this week. Analysts at Piper Sandler (PIPR) upgraded their rating on Palo Alto (PANW) to "overweight" and raised their price target on the stock from $200 to $225, according to data gathered by Yahoo Finance. The shares are currently down 4.6% year-to-date, with the stock having closed Thursday's session at $173.55 per share. Deutsche Bank ( also upgraded its rating to a "buy" and raised its price target from $200 to $220. Read more: Stocks that are trending today Brad Zelnick, managing director, software equity research at Deutsche Bank ( said in a note on Wednesday that his team upgraded the stock given its "thoughts on the health of the business, quality of its leadership, and forward prospects for the announced acquisition of CyberArk (CYBR)". Palo Alto (PANW) announced at the end of July that it had agreed to buy Israeli rival CyberArk in a $25bn deal. "With the stock underperforming broader cyber by 15% YTD and 11% since credible speculation of the acquisition, we think investor concerns are overblown," said Zelnick. Shares in the Palo Alto (PANW) came under pressure following the release of its third quarter earnings in May, as the results failed to impress investors. The cybersecurity company's third quarter revenue came in at $2.3bn, just above expectations, while adjusted earnings per share (EPS) were $0.80. For the fourth quarter, Palo Alto (PANW) guided to total revenue in the range of $2.49bn to $2.51bn, representing year-over-year growth of between 14% and 15%. Baidu ( BIDU) – Releases second quarter earnings on Wednesday 20 August In July, Baidu ( BIDU) and ride-hailing app Uber (UBER) announced a multi-year partnership to deploy thousands of the Chinese company's Apollo Go autonomous vehicles on the Uber platform across multiple global markets. The companies said that the first deployments are expected in Asia and the Middle East later this year. Baidu's ( BIDU) Hong Kong-listed shares rose following the news, though the stock is still trading just 5.3% in the green year-to-date. In terms of financial performance, Baidu's ( BIDU) total revenue was up 3% year-on-year in the first quarter to $4.47bn, though adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) were down 13% year-on-year at $993m. Read more: EU economic growth slows to 0.2% in second quarter Robin Li, CEO of Baidu ( BIDU), said that 7% growth in the company's core revenue was "driven by the accelerating momentum" of its AI cloud business. "The strong performance of our AI cloud business underscores the growing market recognition of our distinctive strength in providing full-stack AI products and solutions with a highly competitive price-performance advantage," he said. "We also achieved a pivotal milestone in our robotaxi business, as Apollo Go expanded internationally by entering Dubai and Abu Dhabi." "We are confident that our AI-first strategy positions us to remain at the forefront and to capture long-term growth opportunities in the AI era," Li added. Other companies reporting next week include: Monday 18 August BATM Communications (BVC.L) Thungela Resources (TGA.L) Tuesday 19 August IWG (IWG.L) Tribal (TRB.L) BHP (BHP.L) Xiaomi ( Coloplast ( Home Depot (HD) Medtronic (MDT) Amer Sports (AS) Toll Brothers (TOL) Wednesday 20 August OSB (OSB.L) Costain (COST.L) Ithaca Energy (ITH.L) Kenmare Resources (KMR.L) Hong Kong Exchanges ( DFDS ( Lowe's (LOW) Analog Devices (ADI) Estée Lauder (EL) Coty (COTY) Thursday 21 August Hays (HAS.L) Brambles ( AIA ( Aegon ( GN Store Nord ( Tessenderlo ( Zoom Communications (ZM) Dollar Tree (DLTR) Friday 22 August Meituan ( GoldFields ( You can read Yahoo Finance's full calendar here. Read more: Bank of England cuts gilt holdings by £32.5bn in second quarter The most popular stocks and funds investors bought in July UK job market continues to weaken as vacancies fall
Yahoo
20 hours ago
- Business
- Yahoo
Finance week ahead: Jackson Hole Symposium, UK inflation, Walmart, Palo Alto Networks and Baidu
Earnings season is winding down but there are still a number of companies due to report, along with key economic data and events on both sides of the Atlantic – including the Jackson Hole Symposium. This year's Jackson Hole Symposium will see central bankers from around the world gather to discuss economic policy – an event that will be closely watched by investors for any signals on the US Federal Reserve's plans for future interest rate cuts. Back in the UK, the focus will be on the latest inflation data, which has been ticking higher over the past couple of months. In terms of earnings releases, investors will be looking at results from US retail giant Walmart (WMT), which is considered a barometer for consumer sentiment. In the tech sector, US cybersecurity giant Palo Alto Networks (PANW) is set to report, with the stock having seen a couple of analyst ratings upgrades this week. China's Baidu ( BIDU) is another major tech company scheduled to report, having recently struck a deal with Uber (UBER) to deploy its autonomous cars on the ride-hailing platform across markets outside of the US and mainland China. Here's more on what to look out for: Jackson Hole Symposium – Takes place from Thursday 21 August to Saturday 23 August The theme for this year's Jackson Hole event is "Labor Markets in Transition: Demographics, Productivity, and Macroeconomic Policy". This comes amid concerns about a cooling labour market, as economic uncertainty sees firms put off hiring decisions. Central bankers keep a close eye on labour market data, which includes payroll numbers, unemployment rates, job vacancies and wage growth. This data helps inform their decisions on interest rates, as they seek to balance maintaining labour market health, with ensuring inflation continues to ease to the widely used 2% target. This has been more challenging amid fears that US president Donald Trump's tariffs could weigh on economic growth but also drive inflation higher. Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "Although the effect of Trump's tariffs on monetary policy will be the undercurrent theme, investors will be looking specifically for clues as to the Fed's inclination to cut interest rates going forward." Read more: Analysts' top emerging market fund and trust picks "Bets on a cut in September have increased sharply following a stable inflation reading for July and there will focus on what could lie ahead for borrowing costs," she said. Data released on Tuesday showed that "core" inflation rose 0.3% in July, surpassing June's 0.2% uptick. On an annual basis, the core consumer prices index (CPI) reading came in at 3.1%, up from 2.9% in June. Another inflation measure, the producer price index (PPI) came in hotter than expected in July, according to figures released on Thursday. US PPI for July showed inflation for businesses rose 0.9% over the prior month, well ahead of the 0.2% increase that was forecast. On an annual basis, prices rose 3.3%, which was also ahead of the 2.5% expected. This data dented investor hopes of a bigger 50-basis-point interest rate cut by the Fed. In addition, Streeter said: "How to bolster productivity in an era of demographic change will also be a big focus of discussions, with labour markets around the world in a state of upheaval as population changes, tougher immigration laws and AI developments are set to be hugely disruptive in the years to come." UK consumer price inflation – Data due out on Wednesday 20 August Following a year-on-year uptick in the UK consumer prices index (CPI) to 3.6% in June from 3.4% in May, Streeter said that there is set to be a "steamier inflation reading for July". "The Bank of England is now forecasting that CPI will hit a peak of 4% in September so, for now, it looks like the only way is up for prices," she said. "Barclaycard data has shown that there was an uplift in card spending in July, especially around events like the Oasis tour," she added. "The hot but stormy weather also led to a spurt in clothing purchases. Wage inflation has remained sticky." Office for National Statistics (ONS) data, released on Tuesday, showed that annual wage growth excluding bonuses came in at 5% in April to June, unchanged from the previous three months. Read more: What are bitcoin ETNs? "Although pay growth has slowed, it's now static and is still outstripping inflation, so there's a risk that firms will pass on heavier costs as higher prices," said Streeter. "Unless there's a marked and unexpected fall in inflation, the Bank of England looks set to stay cautious and delay another interest rate cut at least November or December." Sanjay Raja, senior economist at Deutsche Bank ( said in a note on Friday that his team expect headline CPI to rise to 3.8% in July. "July inflation will likely see price momentum rise further into uncomfortable territory," he said. Walmart (WMT) – Releases second quarter earnings on Thursday 21 August As the largest retailer in the US, Walmart (WMT) is consider to act as a bellwether for consumer health, so it's earnings are closely watched by investors. Shares are up more than 11% year-to-date but edged lower after Walmart released a mixed set of first quarter results in May. Walmart (WMT) posted first quarter revenue of $165.5bn (£122.02bn) , which was up 2.5% from the same period last year, though this missed Wall Street expectations of $166.02bn. Adjusted earnings per share grew 1.7% year over year to $0.61, beating estimates of $0.58. US same-store sales also beat expectations with a 4.5% increase, led by health and wellness, and groceries. However, the retailer signalled that there could be more pain ahead. In an earnings call, Walmart (WMT) CEO Doug McMillon said: "We will do our best to keep our prices as low as possible, but given the magnitude of the tariffs, even at the reduced levels announced this week, we aren't able to absorb all the pressure given the reality of narrow retail margins." Stocks: Create your watchlist and portfolio John David Rainey, chief financial officer of Walmart (WMT), said in the earnings release that the company had decided to hold off on providing a specific range of guidance for operating income growth and earnings per share for the second quarter, given the "dynamic nature of the backdrop". Walmart (WMT) did guide to net sales growth of 3.5% to 4.5% for the quarter, based on the $167.8bn it reported a year ago. AJ Bell's (AJB.L) investment director Russ Mould and head of financial analysis Danni Hewson said that analysts expect a headline figure for net sales of $174bn. "That turns into a consensus analysts' forecasts for [net profit in] the second quarter of $5.8bn, and a headline earnings per share (EPS) figure of $0.72, up from $0.67 a year ago," they said. "For the full year to January 2026, Walmart has thus far guided to a net sales increase on a constant currency basis of 3% to 4% and analysts' headline estimate for the top line is $699bn," they added. "Management expects full-year EPS to come in between $2.50 and $2.60, and the current analysts' consensus is $2.58." Palo Alto Networks (PANW) – Releases fourth quarter earnings on Monday 18 August Ahead of the release of its fourth quarter earnings, Palo Alto Networks (PANW) has seen two analyst rating upgrades this week. Analysts at Piper Sandler (PIPR) upgraded their rating on Palo Alto (PANW) to "overweight" and raised their price target on the stock from $200 to $225, according to data gathered by Yahoo Finance. The shares are currently down 4.6% year-to-date, with the stock having closed Thursday's session at $173.55 per share. Deutsche Bank ( also upgraded its rating to a "buy" and raised its price target from $200 to $220. Read more: Stocks that are trending today Brad Zelnick, managing director, software equity research at Deutsche Bank ( said in a note on Wednesday that his team upgraded the stock given its "thoughts on the health of the business, quality of its leadership, and forward prospects for the announced acquisition of CyberArk (CYBR)". Palo Alto (PANW) announced at the end of July that it had agreed to buy Israeli rival CyberArk in a $25bn deal. "With the stock underperforming broader cyber by 15% YTD and 11% since credible speculation of the acquisition, we think investor concerns are overblown," said Zelnick. Shares in the Palo Alto (PANW) came under pressure following the release of its third quarter earnings in May, as the results failed to impress investors. The cybersecurity company's third quarter revenue came in at $2.3bn, just above expectations, while adjusted earnings per share (EPS) were $0.80. For the fourth quarter, Palo Alto (PANW) guided to total revenue in the range of $2.49bn to $2.51bn, representing year-over-year growth of between 14% and 15%. Baidu ( BIDU) – Releases second quarter earnings on Wednesday 20 August In July, Baidu ( BIDU) and ride-hailing app Uber (UBER) announced a multi-year partnership to deploy thousands of the Chinese company's Apollo Go autonomous vehicles on the Uber platform across multiple global markets. The companies said that the first deployments are expected in Asia and the Middle East later this year. Baidu's ( BIDU) Hong Kong-listed shares rose following the news, though the stock is still trading just 5.3% in the green year-to-date. In terms of financial performance, Baidu's ( BIDU) total revenue was up 3% year-on-year in the first quarter to $4.47bn, though adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) were down 13% year-on-year at $993m. Read more: EU economic growth slows to 0.2% in second quarter Robin Li, CEO of Baidu ( BIDU), said that 7% growth in the company's core revenue was "driven by the accelerating momentum" of its AI cloud business. "The strong performance of our AI cloud business underscores the growing market recognition of our distinctive strength in providing full-stack AI products and solutions with a highly competitive price-performance advantage," he said. "We also achieved a pivotal milestone in our robotaxi business, as Apollo Go expanded internationally by entering Dubai and Abu Dhabi." "We are confident that our AI-first strategy positions us to remain at the forefront and to capture long-term growth opportunities in the AI era," Li added. Other companies reporting next week include: Monday 18 August BATM Communications (BVC.L) Thungela Resources (TGA.L) Tuesday 19 August IWG (IWG.L) Tribal (TRB.L) BHP (BHP.L) Xiaomi ( Coloplast ( Home Depot (HD) Medtronic (MDT) Amer Sports (AS) Toll Brothers (TOL) Wednesday 20 August OSB (OSB.L) Costain (COST.L) Ithaca Energy (ITH.L) Kenmare Resources (KMR.L) Hong Kong Exchanges ( DFDS ( Lowe's (LOW) Analog Devices (ADI) Estée Lauder (EL) Coty (COTY) Thursday 21 August Hays (HAS.L) Brambles ( AIA ( Aegon ( GN Store Nord ( Tessenderlo ( Zoom Communications (ZM) Dollar Tree (DLTR) Friday 22 August Meituan ( GoldFields ( You can read Yahoo Finance's full calendar here. Read more: Bank of England cuts gilt holdings by £32.5bn in second quarter The most popular stocks and funds investors bought in July UK job market continues to weaken as vacancies fall
CNA
3 days ago
- Business
- CNA
World shares hit record as rate hopes, inflation data buoy sentiment
LONDON/TOKYO :Global share markets hit a record and the dollar was subdued on Wednesday, as investors cheered mild inflation data and signs of resilience in major economies, and expectations of a U.S. rate buoyed demand for riskier assets. The MSCI All Country World Index of shares climbed for a second day and reached 950.13, an all-time high. Japan's Nikkei stock index, meanwhile, set a fresh peak for a second-straight session. European stocks advanced 0.5 per cent, with German shares adding 0.6 per cent. Tech and defence stocks led the gains. U.S. inflation readings, which on Tuesday showed the consumer price index (CPI) rising slightly less than forecast in the year through July, indicated President Donald Trump's import tariffs had yet to filter down to consumer prices. That helped Wall Street scale new heights, supported by increasing certainty that the Federal Reserve will cut interest rates next month. "The fact that CPI was broadly as expected was met with relief, leading to equity gains and tighter credit spreads as investors became increasingly confident about another rate cut," Deutsche Bank analysts wrote. Trump's signing of an executive order pausing triple-digit levies on Chinese imports for another 90 days also boosted optimism. Wall Street was also set for gains, with a gauge of S&P 500 futures up 0.7 per cent. In Japan, a Reuters poll that tracks the Bank of Japan's quarterly tankan business survey showed the Japanese manufacturers' sentiment index improved for a second straight month. Another report showed Japan's wholesale inflation slowed in July, underscoring the central bank's view that upward price pressure from raw material costs will ease. The Nikkei rose for the sixth straight day, breaking the 43,000 level for the first time and hitting a fresh record high. Risk-sensitive cryptocurrency ether rose to an almost four-year high above $4,679. FED CUT The dollar index, which tracks the greenback against a basket of major peers, fell for a second day. It was last down 0.2 per cent at 97.80 The dollar fell 0.2 per cent against the yen to 147.47. The euro added 0.3 per cent to $1.1706, after a 0.5 per cent jump in the previous session. Traders are pricing in a 94 per cent chance of a Fed cut in September, up from about 57 per cent a month ago, according to the CME FedWatch tool. Investors had been on tenterhooks about the inflation data because it followed a surprisingly weak jobs report on August 1 and had the potential to stoke concerns about stagflation - when an economy suffers both high inflation and high unemployment. Trump has nominated White House adviser Stephen Miran to temporarily fill a vacant board seat at the U.S. central bank, stirring up speculation about presidential interference in monetary policy. And the White House said it was "the plan" that the Bureau of Labor Statistics would continue to publish its closely watched monthly employment report after Trump's pick to head the agency, E.J. Antoni, proposed suspending its release. Speculation the labour report would be halted has "done the USD no favours and would have only incentivised foreign investors to review their hedging ratios on U.S. investments," Chris Weston, head of research at Pepperstone, said in a note. In sovereign bond markets, German 30-year bond yields fell on Wednesday, retreating from the previous day's 14-year high.
Reuters
4 days ago
- Business
- Reuters
Currency markets brace for US inflation data
TOKYO/LONDON, Aug 12 (Reuters) - Currency markets were in a holding pattern on Tuesday, with traders' reluctance to make large bets ahead of U.S. inflation data - important for Federal Reserve policy expectations - capping moves after UK jobs data and an Australian rate cut. A moderate reading on U.S. price pressures could cement bets for a Fed rate reduction next month, which increased after last week's soft payrolls data. But if signs emerge that U.S. President Donald Trump's tariffs are stoking inflation, that could pressure the central bank to stay on hold. That in turn would fuel further tensions with Trump, who has urged the Fed to cut rates. Economists polled by Reuters expect core CPI to have risen 0.3% in July, pushing the annual rate higher to 3%, and traders currently put the odds of a quarter-point rate cut on September 17 at about 89%. Ahead of the data, due at 1230 GMT, the dollar was up 0.1% to 148.31 yen , while the euro was flat at $1.1613. Sterling was also steady at $1.3434, little moved by data that showed Britain's jobs market weakened further, albeit more slowly, while wage growth stayed strong - the latter underscoring why the Bank of England is so cautious about cutting interest rates. The numbers seem unlikely to change expectations for the BoE, which cut rates only last week in a tight 5-4 vote. Sanjay Raja, chief UK economist at Deutsche Bank, said there were "marginal positives" in the data and there was nothing to suggest labour market loosening was accelerating, but he added "we aren't out of the woods yet". He expects the BoE to continue loosening policy gradually. The Australian dollar fetched $0.6502 , down 0.18%, after the Reserve Bank of Australia's widely-expected decision to cut rates by a quarter point. The central bank cited a slowdown in inflation and a looser labour market, though it was cautious on prospects for further easing. "We remain of the view that a follow-up cut in November is more likely than not, with the cash rate to then stay at 3.35% for an extended period," said Adam Boyton, head of Australian economics at ANZ, in a note. Currency markets largely ignored Trump's decision to in sharply higher tariffs on Chinese imports for another 90 days, as widely expected. With the China seeking to strike a deal averting triple-digit import tariffs, a U.S. official told Reuters that chip makers Nvidia and AMD had agreed to allocate 15% of China sales revenues to the U.S. government, aiming to secure for semiconductors. China's yuan was flat at 7.195 per dollar in offshore trading . Cryptocurrency bitcoin edged up to around $119,100, after climbing as high as $122,308.25 on Monday, taking it close to the all-time peak of $123,153.22 from mid-July.
Khaleej Times
4 days ago
- Business
- Khaleej Times
Currency markets in a holding pattern as they brace for US inflation data
Currency markets were in a holding patternon Tuesday, with traders' reluctance to make large bets ahead of U.S. inflation data - important for Federal Reserve policy expectations - capping moves after UK jobs data and an Australian rate cut. A moderate reading on U.S. price pressures could cement bets for a Fed rate reduction next month, which increased after last week's soft payrolls data. But if signs emerge that U.S. President Donald Trump's tariffs are stoking inflation, that could pressure the central bank to stay on hold. That in turn would fuel further tensions with Trump, who has urged the Fed to cut rates. Economists polled by Reuters expect core CPI to have risen 0.3% in July, pushing the annual rate higher to 3%, and traders currently put the odds of a quarter-point rate cut on September 17 at about 89%. Ahead of the data, due at 1230 GMT, the dollar was up 0.1% to 148.31 yen, while the euro was flat at $1.1613. Sterling was also steady at $1.3434, little moved by data that showed Britain's jobs market weakened further, albeit more slowly, while wage growth stayed strong - the latter underscoring why the Bank of England is so cautious about cutting interest rates. The numbers seem unlikely to change expectations for the BoE, which cut rates only last week in a tight 5-4 vote. Sanjay Raja, chief UK economist at Deutsche Bank, said there were "marginal positives" in the data and there was nothing to suggest labour market loosening was accelerating, but he added "we aren't out of the woods yet". He expects the BoE to continue loosening policy gradually. The Australian dollar fetched $0.6502, down 0.18%, after the Reserve Bank of Australia's widely-expected decision to cut rates by a quarter point. The central bank cited a slowdown in inflation and a looser labour market, though it was cautious on prospects for further easing. "We remain of the view that a follow-up cut in November is more likely than not, with the cash rate to then stay at 3.35% for an extended period," said Adam Boyton, head of Australian economics at ANZ, in a note. Currency markets largely ignored Trump's decision to extend a pause in sharply higher tariffs on Chinese imports for another 90 days, as widely expected. With the U.S. and China seeking to strike a deal averting triple-digit import tariffs, a U.S. official told Reuters that chip makers Nvidia and AMD had agreed to allocate 15% of China sales revenues to the U.S. government, aiming to secure export licences for semiconductors. China's yuan was flat at 7.195 per dollar in offshore trading. Cryptocurrency bitcoin edged up to around $119,100, after climbing as high as $122,308.25 on Monday, taking it close to the all-time peak of $123,153.22 from mid-July.
