Australian share futures are pointing to modest opening losses. A tech-led rally, as the probability of a September rate rise narrowed, helped the Nasdaq Composite advance.
S&P/ASX 200 futures were down 24 points or 0.3 per cent to 9128. The S&P 500 was 0.3 per cent higher at the close in New York, paced higher by real estate and information technology. The US benchmark is holding near the high it set last week.
SpaceX surged 9.7 per cent to $US146.27, extending its rebound over the last five sessions to more than 36 per cent. Nvidia was the best performing among the magnificent seven, rising 3 per cent to $US224.09.
The US consumer price index, excluding often-volatile food and energy categories, rose 0.2 per cent in July from the previous month. Annually, it advanced 2.5 per cent, matching the slowest pace since March 2021.
“The big surprise with a report that had no surprises (all of the data came perfectly in line with the estimates) is that a situation where inflation isn’t reaccelerating, coupled with the most recent, weak jobs report, gives the Fed more time to wait,” Chris Zaccarelli, chief investment officer for Northlight Asset Management, said in a note.
Traders are now pricing in a 62 per cent chance of the Fed holding rates at its September meeting, according to CME’s FedWatch Tool. Before the July inflation data was released, bets were split between a hike and no change.
“It’s pretty clear to date that markets have been overly aggressive in pricing nearer-term hikes as July’s 8 basis points of tightening was countered by a hold and September keeps getting reduced,” Scotiabank’s Derek Holt said. “The three-month moving average of core inflation is now 1.65 per cent month-over-month [seasonally adjusted annual rate] which does not scream hike.”
Source: https://www.afr.com/markets/equity-markets/asx-to-fall-wall-st-higher-after-muted-cpi-data-20260813-p60nva