US index futures are trading up 0.1% to 0.4% following the release of a relatively benign US inflation report, as they try to shake off yesterday’s US index declines of 0.2% to 0.3%. Over in Europe, the Dax is flat and the FTSE is up 0.3%.
US Consumer prices were in line with expectations, up 2.7% over a year ago, a slight uptick from last month’s 2.6% rate. Treasury yields are down slightly on the news suggesting that investors do not see the report providing any kind of roadblock to the Fed cutting rates when it meets next week. US producer prices are due tomorrow morning.
In the wake of disappointing China trade numbers released earlier this week, China-sensitive markets are mixed awaiting more details on potential stimulus. Overnight, Hong Kong fell 0.8%, while Shanghai gained 0.3%. In commodity action, US Crude Oil is up 1.2% but Copper is down 0.3%. Natural Gas is up 4.1%.
The Bank of Canada releases it’s latest interest rate decision at 9:45 am EST. Canada’s central bank is expected to announce a 0.50% interest rate cut to 3.25%. The Loonie is steady today, but it has been tumbling in recent weeks pressured by the threat of tariffs, signs of a soft economy, and expectations of a more dovish monetary policy in Canada relative to the US at the moment. In other currency action, Bitcoin is up 2.0% and Gold is up 0.3%, but Silver is down 0.5%.