Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Top 5 Things to Know in the Market on Friday

Economy Aug 30, 2019 06:14AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

Investing.com - Here are the top five things you need to know in financial markets on Friday, August 30:

1. U.S. futures point higher as trade news holds status quo

U.S. futures extended a previous rally, as the U.S.-China trade standoff remained the major market directional driver.

China’s Foreign Ministry said Friday that trade negotiating teams were maintaining effective communication at a daily news briefing in Beijing, adding no new information but also standing pat on a general sense of de-escalation.

The apparent cooling of tensions in both Beijing and Washington has sent the Dow up nearly 3% this week, consistent with a pattern of constant shifts in rhetoric and action that have sent stocks on wild swings this year.

Trading was expected to be light in New York on Friday ahead of Monday’s Labor Day holiday.

2. Bond yields pull back from record lows, yield curve inversion intact

The improvement in risk appetite appeared to halt a bond rally that sent yields to historic lows earlier this week.

Yields on U.S. Treasuries, which trade inversely to prices, were higher on all maturities of 3 months or more.

But the “dreaded” yield curve inversion, which some consider a leading indicator of recession, remained intact with the yield on the 10-year Treasury hovering about two basis points below that of the two-year. Earlier in the week that spread hit levels not seen since 2007.

Read more: Dollar Snaps Back As Yields Recover - Kathy Lien

3. Inflation, consumer health and manufacturing activity in focus

The update on the health of the U.S. consumer and the pace of consumer prices due at 8:30 AM ET (12:30 GMT) will help traders assess whether the slowdown in the global economy is beginning to seep into the U.S. economy and provide further information for the “data-dependent” Federal Reserve to evaluate just how much, if any, further policy easing will be required in September. Markets have a quarter-point reduction fully priced in.

The Fed’s preferred inflation measure, the core PCE price index excluding volatile food and energy costs is expected to have risen by 0.3% in July from June, and by 1.6% from a year earlier. Personal income is forecast to have slowed although personal spending is expected to accelerate.

In other data, the Chicago purchasing managers’ index will provide a glance at the state of manufacturing activity in the Midwest at 9:45 AM ET (13:45 GMT), while, 15 minutes later, the University of Michigan will release its final reading on consumer sentiment in August.

4. Oil on track for solid weekly gain as markets brace for Dorian

Oil traded lower but was still well on track for its biggest weekly gain since mid-July as a standoff in the U.S.-China dispute, OPEC-led supply cuts, ongoing Middle East tension and a plunge in U.S. crude inventories buoyed prices.

With U.S. crude on track for weekly gains of 3.8%, markets are bracing for the arrival in Florida of tropical storm Dorian. The National Hurricane Center predicts it will become a Category 4 Hurricane as it makes landfall on Labor Day, raising concerns that offshore U.S. crude producers may shutter output.

5. ECB under pressure from hawks, despite low inflation

Euro zone inflation remained stuck far below the European Central Bank’s target, cementing expectations of further stimulus measures to be announced next month, although some policymakers have been arguing against further easing.

Sabine Lautenschlaeger, an ECB executive board member, insisted it's "much too early for a huge package” in a Wednesday interview released on the ECB website on Friday. On Thursday, fellow hawk Klaas Knot had said that market expectations for easing next month were "overdone".

German central bank head Jens Weidmann had said last weekend that he also had reservations about the need for a dramatic intervention, warning especially against a resumption of bond purchases.

-- Reuters contributed to this report.

Top 5 Things to Know in the Market on Friday
 

Related Articles

G7 to stand with Ukraine 'for as long as it takes'
G7 to stand with Ukraine 'for as long as it takes' By Reuters - Jun 27, 2022 4

By Angelo Amante and John Irish SCHLOSS ELMAU, Germany (Reuters) - The Group of Seven club of wealthy nations on Monday vowed to stand with Ukraine "for as long as it takes",...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email