Stocks Slip Ahead of US Data Releases
US equity-index futures are sliding this morning, accompanied by a rise in Treasury yields as traders brace for a slew of crucial economic data over the next two days. Today's focus is on economic growth reports and weekly unemployment claims, which are anticipated ahead of tomorrow's pivotal inflation figures. These updates come in the wake of comments from Fed Governor Michelle Bowman, who yesterday tempered market expectations for imminent interest rate cuts.
European Retailers Struggle
It's been a challenging day for European retailers. Shares of Hennes & Mauritz (H&M) plummeted 15% after the fast-fashion giant reported a significant slump in June sales, attributed to adverse weather conditions in key markets that kept consumers away. UK companies are also feeling the pinch, with earnings reports from electronics retailer Currys and bicycle seller Halfords indicating a decline in consumer demand. The spotlight will soon shift to the US, where Walgreens Boots and Nike are set to report their figures today, providing further insight into retail performance stateside.
Micron's Earnings Disappoint
Micron Technology shares took a hit, tumbling significantly after the company posted disappointing earnings. The weak performance underscores ongoing challenges in the semiconductor sector, adding to the broader market's cautious sentiment.
Yen Remains Under Pressure
The yen remained relatively unchanged on Thursday, holding above 160 against the dollar after hitting its weakest level since 1986 just a day earlier. This ongoing decline has sparked speculation that Japanese authorities might soon intervene to support the currency, aiming to stem the steepest selloff seen in the developed world. Japan's vice minister of finance and currency chief, Masato Kanda, stated on Wednesday that officials are monitoring the foreign-exchange markets with heightened urgency and are prepared to take appropriate measures as necessary. The yen's slump has reached a point where it no longer provides a boost to Japanese stocks, adding another layer of complexity to the economic outlook.
Key Takeaways:
US equity futures decline ahead of significant economic data releases.
European retailers face challenges, with H&M reporting a sharp drop in sales.
Micron shares fall after disappointing earnings.
The yen remains weak, prompting potential intervention by Japanese authorities.
Stay tuned for updates on economic growth, unemployment claims, and inflation figures, as these will heavily influence market directions in the coming days.