(News Bulletin 247) – The New York Stock Exchange should rebound slightly on Wednesday at the opening after its losses the day before, reassured by a decline in bond yields which should help equities regain some color.
Half an hour before the opening, the ‘futures’ contracts on the main New York indices fell by an average of 0.1%, announcing a modest increase in the start of the session.
US markets ended in the red on Tuesday, affected by the decline in banking stocks following Fitch’s warning about the financial health of several regional establishments.
While fears surrounding the debt burden caused pressure on government bonds last week, the relaxation observed today on the bond compartment should support equities.
At 4.02%, the yield on ten-year US Treasury bonds fell towards the closely watched threshold of 4%.
Risk-taking should however remain limited on the eve of the publication by the US Department of Labor of the monthly report on consumer prices, which could have held up well in July.
As usual, investors will be looking for the long-awaited inflection point in monetary policy tightening as signs of slowing inflation mount.
A slew of data out of the US recently suggested that inflation could soon approach the Federal Reserve’s 2% target without a recession being necessary.
On the energy market, oil prices are on the rise again pending the publication, during the morning, of the weekly crude inventories in the United States.
The barrel of American light crude oil (West Texas Intermediate, WTI) is currently up 2% to 83.7 dollars.
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