US pre-open: Stocks futures fall ahead of US CPI
US stocks are expected to open lower ahead of data that is expected to show the US fell further into deflation in April.
Dow Jones I.A.
38,790.43
04:30 15/10/20
Nasdaq 100
17,985.01
12:15 18/03/24
The consumer price index is expected to drop 0.2% year-on-year in April, compared to the previous month’s 0.1% decline.
Minutes of the Federal Reserve’s April 28-29 policy meeting on Wednesday showed officials debated whether the central bank’s target of 2% inflation was too low. One unnamed policymaker suggested the Fed should discuss raising the target, which would leave more room to manoeuvre with short-term interest rates and to respond if a new downturn were to emerge. Interest rates have remained near zero since December 2008.
Fed Chair Janet Yellen will speak in Providence, Rhode Island at 18:00 London time following the release of US CPI at 13:30, potentially shedding further light on the central bank’s next move.
Oanda senior market analyst Craig Erlam said “the Fed is the only one seriously considering hiking interest rates this year which has the potential to seriously shock the markets which is why it doesn’t just attract attention in the US”.
“I think it’s clear that the only thing holding the Fed back at this stage is concerns about inflation not rising to 2% within the forecast period and a rate hike would only make that job harder,” he added.
Among corporate stocks, JP Morgan Chase was higher ahead of the opening bell in New York after the bank defeated claims that it mismanaged trust accounts established for an Indianapolis church endowed by the descendants of drug company founder Eli Lilly.
Deere & Company gained as the agricultural company reported second quarter earnings that exceeded analysts’ expectations.
Oil snapped declines seen on Thursday on profit taking, with West Texas Intermediate down 0.93% to $60.16 per barrel and Brent crude down 1.048% to $65.85 at 12:13 BST.