U.S. equity futures ticked up Monday as investors braced for key inflation data — after almost completely reversing its violent market rout last week. Futures tied to the Dow Jones Industrial Average were up 43 points. S&P 500 futures rose 0.2%, and Nasdaq-100 futures inched higher by 0.2%. The forthcoming batch of inflation data will be key for markets that remain jittery following increased volatility. Wednesday’s consumer price index report for July will be a pivotal cue as to whether the economy remains sound, or if investors will remain uneasy following July’s weak nonfarm payrolls report which contributed to the recent sell-off. “We are optimistic that a short-term bottom was put in place, or came close to being put in place, on August 5th, when the S&P 500 closed down 8.5% from peak (within the range of a normal/healthy pullback of 5-10%) and important technical support levels [were] held,” RBC Capital Markets head of global equity strategy research Lori Calvasina wrote on Monday. “But we remain on guard for choppy conditions to persist for a while longer and don’t rule out a growth scare if economic data releases continue to disappoint.” On Friday, all of the major averages rose to end the week but stopped just shy of a full recovery. The Dow finished the week lower by 0.6%, while the S&P 500 ended down just 0.04%, and the tech-heavy Nasdaq Composite finished with a 0.18% loss. Wall Street began last week with a sharp sell-off on growing concern of a U.S. economic growth slowdown. “Emotions are high and market swings tend to cluster together, so I wouldn’t be shocked if we get another week of turbulence,” Callie Cox, chief market strategist at Ritholtz Wealth Management, told CNBC. “People are beginning to brace for a recession even though a crisis hasn’t materialized. Fear often works in our favor as stock market investors. More relief rallies look possible if economic data holds up, and rate-sensitive sectors could continue to lead the market higher.” Wall Street is also watching for the July producer price index report on Tuesday. July retail sales are also due out Thursday. U.S. Treasury yields rose on Monday as investors looked ahead to the latest inflation prints and other key economic data slated for the week. The yield on the 10-year Treasury was up by more than 1 basis point at 3.953%. The 2-year Treasury was last 1 basis points higher at 4.063%. Asia-Pacific markets mostly rose on Monday after a rollercoaster week that saw steep sell-offs followed by a sharp recovery, especially in Japan stocks. Australia’s S&P/ASX 200 rose 0.46% to end at 7,813.7. Australian consumer electronics retail company JB Hi-Fi was up 8.33% after the company released its full-year results. South Korea’s Kospi ended the day up 1.15% to reach 2,618.30. The small-cap Kosdaq rose 1.08% to 772.72. Major South Korean chipmaker SK Hynix gained 3.21%. Hong Kong’s Hang Seng index was up 0.13%, as of its final hour of trading. Mainland China’s CSI 300 ended the day down 0.17% at 3,325.86. Japan markets were closed for a holiday. Oil prices were little changed in early Asian trading on Monday, holding on to most of last week’s more than 3% gains, supported by geopolitical tensions and better economic data. Brent crude futures fell 7 cents, or 0.09%, to $79.59 a barrel by 0021 GMT, while U.S. West Texas Intermediate crude futures rose 2 cents, or 0.03%, to $76.86. “Traders remain mindful of simmering tensions in the Middle East,” ANZ analysts said in a note. Gold prices inched higher on Monday on U.S. interest rate cut optimism and brewing geopolitical tensions, while traders looked to key U.S. inflation data due later this week for more monetary policy cues. Spot gold rose 0.5% to $2,442.38 per ounce as of 0856 GMT. U.S. gold futures gained 0.3% at $2,481.50.
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