Stocks stabilise after chip selloff; US inflation data up next
SPY•Global stocks edged higher as technology shares steadied ahead of US September inflation data. Brent crude rose above $106 a barrel, while traders priced roughly a 20% chance of a Federal Reserve rate hike this month.
1. Markets steady ahead of CPI
Global stocks rose on Wednesday as AI-related shares and government bonds steadied ahead of US inflation data. Europe's STOXX 600 gained 0.5%, while the MSCI All-World index edged up 0.1%; S&P 500 futures rose 0.1% and Nasdaq futures fell 0.2%.
2. Oil and bonds
Brent crude rose more than 0.5% to $106.40 a barrel after attacks on two vessels in the Strait of Hormuz raised concerns about energy supply disruption. The 10-year Treasury yield dipped one basis point to 5.21%, and the 30-year yield was steady at 5.56%.
3. Inflation and rate expectations
Economists estimated headline US inflation accelerated to 3.6% annually in September, with core CPI expected to rise 0.2% month over month. Money markets priced roughly a 20% chance of a Fed rate hike this month and a near-100% chance of a rise in December.
