(Bloomberg) — Stocks showed small moves as investors postponed their decision-making ahead of Nvidia Corp.’s earnings. and US inflation figures were discussed later in the week.
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US stock futures were little changed. The European Stoxx 600 Index added 0.2%, while mining stocks extended gains. Trading volumes were low, with activity on most European benchmarks at around half of the average level over the past 30 days. US government bonds and the dollar also remained stable.
The stakes are high for Nvidia, which reports Wednesday, especially after an earnings season that saw disappointing results for other ‘Magnificent Seven’ megacaps. Investors will also be looking at data on US economic growth and inflation later this week. In Asia, further signs of a slowdown in China weighed on investor sentiment.
“Markets will trade within a tight range, ahead of U.S. GDP and Nvidia’s quarterly earnings,” said Andreas Lipkow, strategist at Comdirect Bank AG.
Read: What a cut in September could mean for the economy and the elections
Among individual stocks, Associated British Foods Plc fell after Deutsche Bank downgraded the stock to take it off watch. Daimler Truck Holding AG fell after Goldman Sachs downgraded its rating to neutral. Bunzl Plc shares soared after the distribution group raised its full-year profit forecast.
Meanwhile, Fed Bank of San Francisco President Mary Daly said it is appropriate to start cutting rates, while her Richmond counterpart Thomas Barkin said he still saw upside risks to inflation, though he was in favor of a ‘reduced’ interest rate.
Economists see the price index of personal consumption expenditures excluding food and energy – the Fed’s preferred measure of underlying inflation – rising 0.2% for a second month in July. That would reduce the three-month annualized rate of so-called core inflation to 2.1%, slightly above the central bank’s target of 2%.
“Powell closed the deal for a cut in Jackson Hole in September, leaving our position for further expansion/rotation intact,” said Ohsung Kwon of Bank of America Corp. still a risk for the markets if they disappoint.”
Main events this week:
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U.S. Conference Board Consumer Confidence Report, Tuesday
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Nvidia earnings, Wednesday
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The Fed’s Raphael Bostic and Christopher Waller will speak on Wednesday
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Consumer confidence in the eurozone, Thursday
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US GDP, first jobless claims, Thursday
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Raphael Bostic of the Fed will speak on Thursday
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Unemployment in Japan, CPI in Tokyo, industrial production, retail sales, Friday
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CPI eurozone, unemployment, Friday
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US personal income, expenses, PCE; consumer confidence, Friday
Some of the major moves in the markets:
Stocks
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The Stoxx Europe 600 rose 0.3% as of 9:12 a.m. London time
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S&P 500 futures rose 0.3%
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Nasdaq 100 futures rose 0.5%
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Futures on the Dow Jones Industrial Average rose 0.2%
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The MSCI Asia Pacific Index fell 0.2%
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The MSCI Emerging Markets Index fell 0.3%
Currencies
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The Bloomberg Dollar Spot Index was little changed
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The euro was little changed at $1.1169
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The Japanese yen fell 0.3% to 145.01 per dollar
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The offshore yuan fell 0.1% to 7.1327 per dollar
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The British pound rose 0.1% to $1.3206
Cryptocurrencies
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Bitcoin fell 0.9% to $62,868.56
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Ether fell 0.2% to $2,685.22
Bonds
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The yield on 10-year government bonds was little changed at 3.82%
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The German ten-year yield rose by one basis point to 2.26%
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The British ten-year yield rose by nine basis points to 4.00%
Raw materials
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Brent crude fell 0.1% to $81.19 per barrel
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Gold fell 0.4% to $2,508.74 an ounce
This story was produced with the help of Bloomberg Automation.
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