U.S. Equity Futures Rise as Inflation Fears Wane: Markets Wrap
“American equity futures rose on Wednesday after more central-bank officials joined the chorus predicting that inflationary pressures are transitory, soothing concerns that monetary tightening may start sooner than expected. Contracts on the S&P 500 and Nasdaq 100 signaled stocks could move higher today following a drop in U.S. benchmarks Tuesday. Treasuries and the dollar were steady, with attention now turning to tomorrow’s jobs and GDP data for more clues on the outlook for the economy.”
ECB’s Panetta Sees No Justification for Slowing Bond-Buying
“European Central Bank Executive Board member Fabio Panetta said he sees no signs of sustained inflation pressures that would allow for a reduction in bond purchases yet, in the latest move by a top official to downplay expectations of an imminent policy shift. “Only a sustained increase in inflationary pressures, reflected in an upward trend in underlying inflation and bringing inflation and inflation expectations in line with our aim, could justify a reduction in our purchases,” Panetta said in an interview with Nikkei published on Wednesday.”
Bank of Korea Forecasts in Focus for Exit Clues: Decision Guide
“Investors will scrutinize forecast upgrades expected from the Bank of Korea for hints about when the bank is likely to end its run of record-low interest rates. South Korea’s central bank is seen raising its growth and inflation projections significantly at its Thursday meeting after recent economic data beat expectations. Still, analysts see the bank holding its key rate at 0.5%, as the board weighs buoyant exports against Covid uncertainty.”
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