MARKET WRAPS
Stocks:
European shares were mixed Wednesday as global bond markets stabilized and a technology selloff lost some momentum.
Oil prices rose for a fourth day as talks to reopen the Strait of Hormuz and end the Iran war stalled after nearly six months of conflict. President Trump said no talks with Iran are underway or scheduled after a U.S.-Iran ceasefire expired Monday.
"Brent crude remains above $90 a barrel as geopolitical tensions and uncertainty surrounding the Strait of Hormuz keep a significant risk premium in energy markets," IG said.
In the U.K., inflation jumped in July, driven by an anticipated surge in household energy costs.
The slack in the labor market should avoid second-round inflation effects, allowing the Bank of England to look through the near-term rise in inflation and push back against market pricing for interest-rate rises, Schroders said.
U.S. Markets:
Stock futures were up as investors awaited the minutes of the Federal Reserve's July meeting that might provide fresh input into its thinking regarding the policy path ahead.
According to the CME FedWatch tool, traders have significantly scaled back expectations of rate hikes after the latest U.S. economic data, and are now pricing in a 67% probability of a Fed hold.
Forex:
The euro traded flat.
Sterling stayed higher against the dollar and held steady versus the euro, little moved after data showed U.K. inflation accelerated in line with expectations.
The dollar fell as investors turned cautious ahead of the release of the Fed minutes later. Bonds:
Eurozone government bond yields edged lower, moving in line with Treasury yields, as global bond markets stabilized after Tuesday's selloff.
Underperformance in OATs likely has more room to run given key economic and political events ahead, Commerzbank said.
Treasury yields declined in early trade, providing some relief after Tuesday's bond selloff and amid a stalemate in the Middle East.
Energy:
In early European trading, Brent crude was up 0.2%, while WTI futures rose 0.3%.
Gas
European gas prices reached an intraday high of 64 euros a megawatt-hour, their highest level since January 2023, as investors fear the Strait of Hormuz could remain closed into the winter.
Metals:
Gold prices slipped as investors awaited the release of the Fed's July meeting minutes for fresh clues on its monetary policy outlook.
Copper
Copper prices fell back below $14,000 as fresh deliveries into London warehouses eased fears of a supply squeeze.
Warehouse stocks increased by 20,025 metric tons in one day, the biggest daily increase since April, and have now risen for six days in a row, according to ING.
Iron ore
Iron ore futures were higher following their recent correction. The ferrous metal continued to be constrained by weak China demand, ANZ Research said.
EMEA HEADLINES
Iran's Attacks on Ships in Hormuz Mount, Testing U.S. Military Restraint
DUBAI-Iranian attacks on shipping in the Strait of Hormuz are piling up without an American military response, raising the risks of crossing the strategic waterway and frustrating some Arab allies who worry the U.S. doesn't have a strategy to wind down the conflict.
Iran fired two ballistic missiles toward the strait on Tuesday, triggering air defenses in the United Arab Emirates, according to that country's Ministry of Defense, which said the missiles were targeting maritime traffic but ultimately fell into the sea.
U.K. Inflation Surges as Iran War Threatens Further Price Pressures
U.K. inflation jumped in July, driven by a rise in energy charges that could push the pace of price increases even further above the Bank of England's target in the months to come.
Consumer prices rose 2.9% in July from a year earlier, up from 2.6% in June, the Office for National Statistics said Wednesday. That is the highest annual inflation rate since March, when prices spiked following the outbreak of the war in Iran.
Apple to Change Terms for App Developers to Appease EU's Antitrust Officials
Apple plans to change its terms for app developers in the European Union, seeking an end to a yearslong antitrust dispute over how the tech company manages its devices and App Store that included a 500 million-euro ($579 million) fine.
The U.S. company said changes include placing developers under a single set of business terms and adjust its commission fees. Apple also said it would put in place additional protections for younger users, including by not allowing apps to link away from the app store for payments if a user is under 13.
Carlsberg Lifts Lower End of Guidance as Nonalcoholic Drinks Offset Beer Declines
Carlsberg lifted the lower end of its full-year guidance range, citing synergies from its Britvic acquisition and tight control over costs.
The Copenhagen-based brewer said total volumes grew by 2.8% in the first six months of the year, reflecting the integration of Britvic-the British maker of soft drinks and cordials that Carlsberg bought for some 3.3 billion pounds ($4.47 billion) in a deal completed early last year.
GLOBAL NEWS
Stocks Are Sizzlin'-and Fall Will Be Even Hotter
The third quarter has been an upbeat one for stocks, with the S&P 500 overcoming earlier July weakness to put up three straight weeks of gains, including three record highs along the way.
Plenty of headline events remain this quarter, of course, from big retailers' quarterly results to any hints about interest rates from the Federal Reserve at the Jackson Hole Economic Policy Symposium.
U.K. Inflation Surges as Iran War Threatens Further Price Pressures
U.K. inflation jumped in July, driven by a rise in energy charges that could push the pace of price increases even further above the Bank of England's target in the months to come.
Consumer prices rose 2.9% in July from a year earlier, up from 2.6% in June, the Office for National Statistics said Wednesday. That is the highest annual inflation rate since March, when prices spiked following the outbreak of the war in Iran.
Trump Pauses 50% Tariff on Some Canadian Products
President Trump said he would pause a 50% tariff on certain goods from Canada for three days while the two countries seek to finalize an agreement.
"I have paused the 50% Tariffs against Canada, that were scheduled to kick in tomorrow morning for a three-day period, based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!" Trump said on social media Tuesday night.
Trump Pauses 50% Tariff on Some Canadian Products
President Trump said he would pause a 50% tariff on certain goods from Canada for three days while the two countries seek to finalize an agreement.
"I have paused the 50% Tariffs against Canada, that were scheduled to kick in tomorrow morning for a three-day period, based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!" Trump said on social media Tuesday night.
Syria Takes Major Step to Come Clean on Past Nuclear Program
Syria took a major step in clearing up its one-time suspected nuclear weapons program, allowing U.N. atomic inspectors to verify nuclear material believed to have been stored in the country for at least two decades.
Rafael Grossi, head of the International Atomic Energy Agency, led a team on Tuesday which checked the presence of uranium metal at a site that Damascus disclosed just last month. Syria's new leadership agreed to place the material under future agency oversight. Uranium metal can be used as fuel in a reactor or as a key component of a nuclear warhead.
The Tiny Spanish Territory of Ceuta Is Grappling With a New Migrant Crisis
CEUTA, Spain-An abandoned warehouse complex overlooking the Moroccan border in this tiny Spanish territory has become a squalid village, with hundreds of migrants living under sheets tied to the sides of buildings and sleeping on broken-down cars and ripped sofas.
Three weeks ago, more than 72,000 migrants poured into Ceuta, overwhelming authorities and causing many residents to close up their shops and stay inside their homes. Seeing little hope of making it to continental Europe, most of the migrants left within days. But thousands who stayed behind, refusing to leave, are creating a humanitarian crisis in the Spanish exclave-and a growing headache for local residents.
Write to priscila.barrera@wsj.com
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