Wall Street indexes reached new highs on earnings optimism, while oil climbed after Houthi attacks on Saudi Arabia. Markets put the chance of a 25-basis-point October Fed hike at 20.5%, down from about 51% a week earlier, and the chance of a December hike at 84.5%.
Wall Street indexes scaled new heights overnight on earnings optimism, but the buzz faded in Asia as oil prices climbed following attacks by Yemen's Iran-backed Houthis on Saudi Arabia. US stock futures edged up 0.08%, while Euro Stoxx 50 futures fell 0.62%, German DAX futures dropped 0.55% and FTSE futures slid 0.25%.
Market focus turned to the release of Federal Reserve meeting minutes and speeches by policymakers. The chance of an October hike of at least 25 basis points stood at 20.5%, down from about 51% a week earlier, while markets priced in an 84.5% chance of a December hike. The US Treasury was set to sell $39 billion of 10-year notes on Wednesday after a solid three-year auction.
French government bonds rallied after Marine Le Pen outlined plans to cut spending, following a surge in yields to multi-decade highs. US Vice President JD Vance said Iran must make a “meaningful” reduction in its nuclear enrichment capacity to end a war that has roiled energy markets and stoked inflation for eight months.
