Treasuries and Further Economic Reports
U.S. Treasury yields remained largely unchanged as market participants pondered inflation’s trajectory after the recent CPI announcement. Specifically, the 10-year Treasury saw a minor increment to 4.2545%.
As we move forward, traders have their eyes on the imminent release of the PPI, expected to rise by 0.4%, slightly outpacing July’s 0.3% gain. Upcoming retail sales figures and Friday’s consumer sentiment report will also play a crucial role in shaping market sentiment.
Arm Announces IPO Pricing
On the global front, shares of Japanese holding giant Softbank experienced a dip after its subsidiary, Arm, announced its IPO pricing at $51 per share. This IPO values Arm, set to trade on the Nasdaq, at an impressive fully diluted market capitalization of over $54 billion. Softbank is expected to retain control of approximately 90% of Arm’s outstanding shares.
Short-Term Forecast: Bullish with Volatility
While the central bank might hold steady on rates for now, markets will likely see increased volatility. Futures data suggests a near-even split on the possibility of a rate increase in November. This uncertainty, combined with other economic indicators, makes a bullish short-term forecast with a side of volatility through year-end highly probable. Assets that have pushed the market up this year might soon appear overvalued in light of rising yields.
amp.fxempire.com