MARKET WRAPS
Watch For:
U.K. GDP, balance of payments; CPI data for France, Germany, Italy; Germany unemployment; no major corporate events expected
Opening Call:
European stock futures traded higher early Wednesday. Asian stock benchmarks were mixed; the dollar weakened; Treasury yields edged lower; oil futures and gold strengthened.
Equities:
Stock futures point to a stronger open in Europe, as diminished expectations of near-term Federal Reserve interest-rate hikes boosted risk appetite.
New York Fed President John Williams said Tuesday that the U.S. central bank faces no urgency to raise rates following its increase earlier this month. His comments suggest that the Fed could wait until December before lifting rates again, easing expectations for another rate increase next month.
Remarks from Williams have particular weight because as vice chairman of the Fed's rate-setting committee, he has usually sought to reflect the views of the committee's center of gravity rather than stating his own position.
Forex:
The U.S. dollar weakened. Attention shifts to the coming U.S. data including core PCE tonight and non-farm payrolls on Friday, which will need to validate the market's pricing of more Fed rate hikes, two strategists at OCBC Group Research said.
Stronger inflation and labor-market data could keep USD supported. However, "any downside surprise could see Fed hike expectations pared and prompt some unwinding of recent USD longs," they added.
Bonds:
With no end in sight for the bond selloff, investors are left searching for relatively safe spots in the yield curve. SanJac Alpha's Andrew Wells says the seven-to-10-year section could be that spot.
"For now, we view duration with skepticism," he said.Upcoming data will drive markets, but the yields are biased upwards. A hot PCE print will give "more tightening ammunition," while a soft one will be discounted as "August data that isn't accounting for September oil," he said.
Energy:
Oil prices gained but may be weighed by signs of production recovery. Crude output from Saudi Arabia's East-West pipeline is going through more swiftly than anticipated, analysts said.
Saudi Arabia's exports increased to 5.8 million barrels per day in September, the highest since February 2026, ANZ Research analysts said. "The kingdom also resumed loading vessels at the Red Sea port of Yanbu via its East-West pipeline," they added.
Metals:
Gold advanced. The sell-off seen on Monday was stabilizing as oil and U.S. treasury yields eased, and Fed hike expectations moderated, OCBC Group Research said. Near-term price direction for the precious metal remains sensitive to whether upcoming U.S. labour and inflation data validate or challenge the recent hawkish Fed repricing in the market, it added.
Chinese copper premiums are around a two-year high, supported by a sharp drop in inventories, Commonwealth Bank of Australia analyst Vivek Dhar said.
Stocks have fallen as more metal is shipped to the U.S. amid talk of potential tariffs by the Trump administration. "What is clear is that China's limited copper inventories and increased copper premium have not been caused by a significant improvement in Chinese demand," Dhar said.
Iron ore rose. Prices were likely to continue fluctuating before China's weeklong National Day holiday, which begins Thursday, Baocheng Futures analysts said. The ferrous metal's prices could weaken as its fundamentals remain weak due to a supply-demand imbalance, they added.
TODAY'S TOP HEADLINES
Wall Street's Hopes for a Blockbuster IPO Season Are Fading
Market choppiness and artificial-intelligence safety fears are spooking investors and throwing into disarray what was expected to be a string of blockbuster IPOs this fall.
Smart-ring maker Oura was the latest company to postpone its initial public offering when it said Tuesday it was delaying the offering because of "uncertainty in the IPO market."
Bond Yields Keep Rising Despite Drop in Oil Price, Dovish Fed Speech
The punishing selloff in bonds is driving Treasury yields to ever more eye-catching milestones, with the 30-year bond yield reaching a 24-year high.
The slide continued Tuesday despite a decline in oil prices, a key driver of bond yields since the start of the war in Iran. Higher energy costs have spurred concerns that the Federal Reserve will need to keep raising interest rates well into next year-though other factors have also played a part, including recent signs of a strengthening economy.
Trump Defends Light-Touch AI Strategy After Industry Sounds Alarms
WASHINGTON-President Trump promised not to hamper the artificial-intelligence industry with regulations, doubling down Tuesday on his light-touch approach despite growing calls from Silicon Valley and the public for new guardrails.
"I will never stifle the growth of technology that will be bigger than the industrial revolution," he said at an event to unveil a new America.gov website built with AI to make it easier for citizens to access federal government services. The Justice Department, Federal Bureau of Investigation and existing authorities are sufficient to hold accountable bad actors using AI for nefarious purposes, he said.
The U.S. Military Exits Iraq, Leaving Behind a Nation in Peril
BAGHDAD-After spending more than 23 years and $1.7 trillion, America is winding down what critics have called its forever war in Iraq, closing the last major U.S. military base on Wednesday.
"We don't think we need the military there anymore," President Trump said during a White House visit by Iraqi Prime Minister Ali al-Zaidi in July. "We have a fantastic champion, a new champion," the president said. "He's young, and he's handsome."
Robinhood's Next Big Bet: AI Bots That Trade While You Sleep
HOUSTON-Robinhood Markets helped usher in a new generation of investors by making it easy to buy stocks on a smartphone. The next investing revolution, its executives said, will be led by bots.
Artificial intelligence was front and center at Robinhood's annual event for its most-active users. Holding court at the George R. Brown Convention Center in Houston, the brokerage's executives unveiled a slew of new tools and services. Among the most significant: an in-app AI agent that can answer questions about the market, build an investment strategy from scratch and eventually place trades while you sleep, work or otherwise turn away from the screen.
Write to singaporeeditors@dowjones.com
Expected Major Events for Wednesday 04:30/NED: Aug PPI
05:00/FIN: Aug Retail sales
06:00/DEN: Aug Unemployment
06:00/SWE: Aug Retail sales
06:00/UK: 2Q Balance of Payments
06:00/UK: 2Q Business investment revised results
06:00/DEN: 2Q Revised GDP
06:00/UK: 2Q UK quarterly national accounts
06:00/GER: Aug Foreign trade price indices
06:00/GER: Aug Retail Trade
06:30/HUN: Aug PPI
06:30/HUN: Aug Trade Balance
06:45/FRA: Aug PPI
06:45/FRA: Aug Household consumption expenditure in manufactured goods
06:45/FRA: Sep Provisional CPI
07:00/TUR: Aug Foreign Trade
07:00/TUR: Aug Employment / Unemployment
07:55/GER: Sep Labour market statistics (incl unemployment)
08:00/ITA: Sep Consumer Confidence Survey
08:00/ITA: Sep Business Confidence Survey
08:00/GER: Sep Brandenburg CPI
08:00/GER: Sep Bavaria CPI
08:00/GER: Sep North Rhine Westphalia CPI
08:00/GER: Sep Saxony CPI
08:00/GER: Sep Hesse CPI
08:00/GER: Sep Baden-Wuerttemberg CPI
08:00/BUL: Aug PPI
09:00/MLT: Aug PPI
09:00/CRO: Aug Industrial Production Volume Index
09:00/CYP: Aug PPI
09:00/GRE: Aug PPI
09:00/GRE: Jul Turnover Index in Retail Trade
09:00/ITA: Sep Provisional CPI
09:00/ITA: Sep Cities CPI
09:00/BEL: 2Q Balance of Payments
09:00/LUX: Aug PPI
09:00/CRO: Aug Retail trade
09:00/GRE: Aug Labour Force Survey
09:30/BEL: Aug PPI
10:00/IRL: Aug Retail Sales Index
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