Stock futures were down Wednesday after the S&P 500 and Nasdaq closed at
record highs the previous session.
Oil prices rose, with Brent crude above $100 a barrel as attacks by Yemen's Houthi rebels on Saudi Arabia kept regional tensions elevated and threatened a recovery in exports.
The global bond selloff resumed Wednesday after a day of relief, as investors awaited the Federal Open Market Committee's minutes from its September meeting to help gauge what the central bank might do next.
Markets currently assign a 22% probability to a rate increase in October, down sharply from around 70% at the beginning of last week, although several rate increases are still expected over the coming year, according to LSEG data.
"We expect a pause, but still believe further hikes will be on the cards in December and March," Danske Bank said.
Stocks to watch
Constellation Brands slid more than 4% ahead of the opening bell after reporting earnings.
Levi Strauss is set to report quarterly earnings after the closing bell.
Space Exploration Technologies fell nearly 2% premarket after reports that Elon Musk's rocket and AI company was looking to raise $40 billion to buy chips from Nvidia.
Watch For:
U.S. EIA Weekly Petroleum Status Report; FOMC Meeting Minutes
Today's Top Headlines/Must Reads:
- How to Handle Red-Hot Copper Prices With Care
- A High-Stakes Gambit Clinched Paramount's Warner Deal
- Inside Bessent's Treasury: Tension, Turnover and Unmet Economic Goals
MARKET WRAPS Forex:
The dollar gained as the Middle East conflict pushed up oil prices and as Treasury yields rose.
The euro fell, albeit staying above recent lows.
Bonds:
Treasury yields rose, reversing Tuesday's falls, as investors awaited the release of the Fed's September meeting minutes.
The energy shock and higher expectations for policy rates are an important part of the explanation for the sharp rise in long-term rates but the rise also reflects more structural changes, SEB said.
Danske Bank analysts see the risk of 10-year and 30-year Treasury yields hitting 6% as investors demand a higher premium for the long end.
Energy:
Brent was up 1%, while WTI futures were 1% higher.
Metals:
Gold prices fell as investors awaited the release of the Fed's meeting minutes for more cues on this year's inflation and monetary policy outlook.
TODAY'S TOP HEADLINES
Japan's Antitrust Regulator Investigates Major Beer Makers
Japan's four major beer makers were probed by the Japanese antitrust regulator for suspected violations of antimonopoly regulations, the companies said.
Asahi Group Holdings, Kirin Holdings, Suntory Holdings and Sapporo Breweries said in separate statements Wednesday that they will fully cooperate with the investigation by the Japan Fair Trade Commission.
Shell's Refining Margin Soars to Record High After Middle East Conflict Upends Fuel Markets
Shell expects to report that its refining margin hit a record high in the third quarter, driven by volatility stemming from the conflict in the Middle East and a global supply squeeze across fuel markets.
The London-based energy major said Wednesday that its refining margin marker is forecast at $42 a barrel for the third quarter compared with $24 a barrel in the second quarter. The previous record margin was $28.04 a barrel, shortly after Russia's full-scale invasion of Ukraine in 2022.
Porsche Plans 20% Price Rise for Top-End Models in Exclusivity Push
Porsche plans to make its cars even more exclusive while continuing to cut costs and streamline its operations as it targets higher profitability in coming years.
The German sports-car maker said ahead of an investor event Wednesday that it will offer more higher-end vehicles and aim to increase the average selling price of these models by about 20% to 330,000 euros ($371,596).
A High-Stakes Gambit Clinched Paramount's Warner Deal
David Ellison was on the ropes.
It was late July, and a judge had handed down a temporary restraining order halting the media mogul's $81 billion deal to combine his Paramount entertainment company with the much larger Warner Bros. Discovery-an early setback in his antitrust battle with 12 state attorneys general.
IMF Chief Tells Economic Leaders: The Time to Act Is Now
The global economy is caught in a tug of war between an energy shock and an artificial-intelligence boom.
Those forces are testing the resilience economies have shown through a series of crises, International Monetary Fund Managing Director Kristalina Georgieva said Wednesday.
U.S., European Government-Bond Yields Rise; French Bonds Underperform on Budget Worries
Yields on U.S. and European government bonds rose, with French bonds underperforming due to ongoing budget concerns, as the global bond selloff resumed Wednesday after a day of relief.
U.S. Treasury yields rose in Asian hours and continued to do so as Europe opened, with investors awaiting the minutes of the Federal Reserve's September meeting where it raised interest rates by 25 basis points to 3.75%-4.00%. The minutes are due at 1800 GMT.
Oil Prices Rise as Houthi Attacks, U.S. Gulf Storm Raise Supply Risks
Oil prices rose Wednesday as traders weighed fresh Houthi attacks in Saudi Arabia and storm-related U.S. Gulf production shut-ins against recovering Middle East crude supplies.
December Brent crude futures rose 1% to $101.54 a barrel, while December West Texas Intermediate futures gained 1% to $89.31 a barrel.
How to Handle Red-Hot Copper Prices With Care
Copper is one of the hottest metals this year, up 17% so far and near record highs. While there are several compelling reasons to own the metal, the commodity needs to be handled with some caution.
There are plenty of reasons to be bullish on copper over the long term. The red metal is at the center of some long-term growth sectors-electrification, defense and artificial-intelligence data centers-that are less cyclical than construction.
IMF Chief Tells Economic Leaders: The Time to Act Is Now
The global economy is caught in a tug of war between an energy shock and an artificial-intelligence boom.
Those forces are testing the resilience economies have shown through a series of crises, International Monetary Fund Managing Director Kristalina Georgieva said Wednesday.
French Government Is Willing to Bypass Parliament to Pass Billions in Cuts
PARIS-France's finance minister said the government is prepared to exercise special constitutional powers and circumvent Parliament to pass billions in spending cuts if negotiations stall over next year's budget.
In an interview, French Finance Minister Roland Lescure said he was willing to negotiate on all aspects of the budget, but he has two red lines-sticking to a maximum budget deficit of 5% of gross domestic product and avoiding any changes that hurt growth.
FlyDubai Attacker Was Part of Pilot Hiring Spree at Fast-Growing Airline
FlyDubai has been one of the world's fastest expanding airlines, nearly doubling its staff since the pandemic to become the go-to low-cost carrier for a travel-hungry region.
That growth is now running headlong into the biggest challenge in the carrier's history: restoring trust after a novice pilot attempted to intentionally crash a plane on one of its most sensitive routes, to Israel's Ben Gurion Airport.
Mexico's Sheinbaum Is Getting Fed Up With Playing Nice With the U.S.
MEXICO CITY-President Claudia Sheinbaum began her workday at dawn last week by grilling Mexico's top security and intelligence officials. She wasn't happy.
Inside the ornate National Palace, Sheinbaum confronted some of her most trusted aides over their plans to freeze the local bank accounts of former Mexican officials linked to a state governor from Sheinbaum's ruling party. The U.S. Treasury was about to target those former officials with sanctions for allegedly accepting bribes to protect the Sinaloa cartel's drug-smuggling operations, said people familiar with the discussion.
Write to priscila.barrera@wsj.com
TODAY IN CANADA Earnings:
Firan Tech Grp Corp. 3Q
Economic Indicators (ET):
Nothing major scheduled.
Stocks to Watch:
Ballard Secures 4.8MW Order from Siemens Mobility to Power Hydrogen Trains in Romania
Definity Financial: 3Q Catastrophe Losses Would Negatively Impact Underwriting Income by About C$190M Net of Reinsurance Recoveries
Goodfellow 3Q EPS C$0.27;3Q Sales C$145.7M
Intact Financial Corporation announces third quarter catastrophe loss estimate
Sigma Lithium Resumes Mining Operations After Brazil Federal Court of Appeals Upholds Environmental Licenses
Expected Major Events for Wednesday 05:00/JPN: Aug Indexes of Business Conditions - Preliminary Release
06:00/JPN: Aug Revised Machine Tool Orders
06:00/UK: Sep Lloyds House Price Index
06:00/GER: Aug Industrial Production Index
06:45/FRA: Aug Foreign trade
06:45/FRA: Aug Balance of payments
08:30/UK: Sep Narrow money (Notes & Coin) and reserve balances
11:00/US: 10/02 MBA Weekly Mortgage Applications Survey
14:00/US: Sep Online Help Wanted Index
14:30/US: 10/02 EIA Weekly Petroleum Status Report
19:00/US: Aug Consumer Credit
23:01/UK: Sep RICS Residential Market Survey
23:01/UK: Sep KPMG and REC UK Report on Jobs
23:50/JPN: Sep International Transactions in Securities
23:50/JPN: Aug Balance of Payments
23:50/JPN: 2Q Revised Balance of Payments
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Wednesday Applied Digital Corp (APLD) is expected to report $-0.30 for 1Q.
Bio-Path Holdings Inc $(BPTH)$ is expected to report for 2Q.
Costco Wholesale Corp (COST) is expected to report.
Firan Technology Group Corp (FTG.T) is expected to report for 3Q.
Comments