
Top 5 Things to Know in the Market on Friday
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Here are the top five things you need to know in financial markets on Friday, August 12:
1. China Data Highlights Economic Slowdown Ahead of IMF Report
Recent data from China, including figures for industrial output and retail sales in July, has revealed weaker-than-expected readings, signaling a slowdown in the economy. Despite this downturn, investors are hopeful that the disappointing numbers will lead to policy easing. The data comes just ahead of the International Monetary Fund’s assessment of the Chinese economy, which is set to be released today.
2. Key U.S. Consumer Indicators Anticipated
As consumer spending has been a primary driver of economic growth in the U.S. during the second quarter, market participants are eager for early indicators reflecting consumer performance at the start of the third quarter. July’s retail sales figures will be published at 12:30 GMT. The consensus forecast anticipates a 0.4% increase in sales, following a 0.6% rise in June, while core retail sales are expected to grow by 0.2%. Additionally, the preliminary consumer sentiment index for August will be released at 14:00 GMT, with an expected increase to 91.5 from 90.0 in the previous month.
3. Dollar Steady Ahead of Fed Commentary
On a day when consumer measures are awaited, the U.S. dollar showed little change. Comments from the President of the San Francisco Federal Reserve, suggesting that a rate hike could occur due to improved labor market conditions and rising inflation, supported a slight uptick in the dollar’s value. Financial markets have adjusted expectations, now reflecting a 51.9% chance of a rate increase in December, according to futures contracts.
4. Continued Oil Price Rally
Oil prices continued to rise as investors shifted focus away from concerns about a global supply glut. The upbeat mood was reinforced by recent comments from Saudi Arabia’s oil minister regarding potential discussions to stabilize output next month, along with a decrease in crude inventories at the Cushing hub. Market watchers are also looking forward to a report from oilfield services provider Baker Hughes, which is expected to show an increase in the number of active oil rigs in the U.S.
5. Mixed Global Stock Markets Ahead of U.S. Data
Global stock markets displayed mixed trading patterns as investors awaited consumer data from the U.S. Sentiment was lifted by a record closing on Wall Street and hopes of policy easing in light of China’s softening economic indicators. European stocks showed varied trends, bolstered by positive GDP figures for the Eurozone, though some mixed trading was observed. Meanwhile, U.S. futures remained stable after reaching record highs on Thursday.
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