• European indices set for higher opening
  • US CPI data in the spotlight
  • NZD drops after unexpected RBNZ rate cut
  • Earnings report from Cisco Systems

European index futures point to a higher opening of the cash session on the Old Continent today. This comes after a mixed trading in Asia-Pacific region earlier today as well as after yesterday's Wall Street rally triggered by dovish PPI release. NZD is top laggard among major currencies after Reserve Bank of New Zealand unexpectedly decided to cut rates by 25 basis points

US inflation will remain in the spotlight today, with release of CPI report for July at 1:30 pm BST. Expectations are for headline price growth to remain unchanged and core price growth to slow slightly. However, yesterday's dovish PPI reading boosted market hopes for a dovish CPI reading today. This means that while lower-than-expected CPI reading may trigger some dovish reaction in the markets, there is also a risk of significant hawkish reaction should the data come in higher-than-expected. Nevertheless, as markets are increasingly certain that the Fed will launch rate cutting cycle in September, any hawkish reaction on the markets may be short-lived.

7:45 am BST - France, final CPI report for July. First release: 2.3% YoY

9:00 am BST - Poland, GDP report for Q2 2024. Expected: 0.9% QoQ. Previous: 0.5% QoQ

10:00 am BST - Euro area, GDP report for Q2 2024. Expected: 0.3% QoQ. Previous: 0.3% QoQ

1:30 pm BST - US, CPI inflation report for July

  • Headline (annual). Expected: 3.0% YoY. Previous: 3.0% YoY
  • Headline (monthly). Expected: 0.2% MoM. Previous: -0.1% MoM
  • Core (annual). Expected: 3.2% YoY. Previous: 3.3% YoY
  • Core (monthly). Expected: 0.2% MoM. Previous:0.1% MoM

3:30 pm BST - DOE report on US oil inventories.

  • Oil inventories. Expected: -2.2 mb (API: -5.21 mb)
  • Gasoline inventories. Expected: -1.4 mb (API: -3.69 mb)
  • Distillate inventories. Expected: -1.6 mb (API: -2.28 mb)

Top Wall Street earnings releases:

  • Cisco Systems (CSCO.US) - after market close
  • UBS (UBS.US) - before market open