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© Reuters. Investing.com – Here are the top five things to know about the financial markets on Friday, August 30th:
1. US futures are trending upward as business news holds the status quo
a previous recovery, as the trade stalemate between the United States and China remained the main driver of market direction.
The Chinese Foreign Ministry said on Friday that the trade negotiating teams attended a press briefing in Beijing daily, adding no new information, but also standing at the peak of de-escalation.
The apparent cooling of tensions in Beijing and Washington pushed up the increase of nearly 3% this week, which is consistent with the steady changes in rhetoric and stocks that have led to a fall in inventories this year.
Transactions should be light in New York on Friday before Monday Labor Day.
2. Bond yields retreat from record lows and the inversion of the yield curve is intact
Improved risk appetite seemed to put an end to the bond rally that led to returns earlier this week.
Returns on US Treasury securities, which trade at the opposite of price, were higher for all maturities greater than or equal to 3 months.
But the "dreaded" reversal of the yield curve, seen by some as a leading indicator of the recession, has remained intact, with the yield hovering about two basis points below that of the. Earlier this week, this spread has reached levels never seen since 2007.
Read more: – Kathy Link
3. Focus on inflation, consumer health and manufacturing activity
The US consumer health update and the pace of consumer prices expected at 8:30 (ET) (12:30 GMT) will help traders assess whether the slowdown in the global economy is starting to infiltrate. in the US economy and information to the Federal Reserve "data dependent" to assess the extent to which, if necessary, additional monetary easing will be needed in September. The markets have a price entirely in.
The Fed's preferred measure of inflation, ie non-food and energy costs, is expected to have increased by 0.3% in July compared to June and 1.6% from the previous year. should have slowed down but should accelerate.
In other data, the Chicago will give an overview of manufacturing activity in the Midwest at 9:45 am (13:45 GMT), while, 15 minutes later, the University of Michigan will release its final reading in August.
4. Oil on the way to a solid weekly gain as markets prepare for Dorian
However, its biggest weekly gain since mid-July remained on track, due to the US-China conflict, OPEC-led power cuts, persistent Middle East tension, and a fall in stocks that supported prices.
With weekly gains of 3.8%, markets are preparing for the. The National Hurricane Center predicts it will become a Category 4 hurricane when it hits the ground on Labor Day, causing crude oil producers in the United States of America to shut down production .
5. ECB under pressure from hawks despite low inflation
remained stuck, raising expectations for the announcement of new stimulus measures next month, although some policymakers have been.
Sabine Lautenschlaeger, a member of the ECB's executive board, said it was "too early for a huge package" in a website published this Thursday on the ECB's website. .
The head of the German central bank Jens Weidmann had said last weekend that he had also expressed reservations about the need for a spectacular intervention, including cautioning against a resumption of purchases of money. obligations.
– Reuters contributed to this report.
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