Global Markets Rise; U.S. Inflation Data Eyed, Gold, Oil Down
By Dow Jones Newswires StaffU.S. futures and global markets rose ahead of September U.S. inflation data later Friday, which is expected to have increased over the month. Meanwhile U.K. retail sales volumes rose for the fourth consecutive month, boosted by tech stores and demand for gold. Retail sales volumes rose 0.5% on month in September against expectations for a 0.4% rise, and after rising 0.6% in August, the Office for National Statistics said. Oil prices fell and gold is set for a weekly loss.U.S. futures for the S&P 500 were up 0.2% and futures for the Dow Jones Industrial Average climbed 0.1%. Inflation data due at 1230 GMT is expected show a rise to 3.1% year-on-year in September from 2.9% in August, according to economists in a WSJ survey.Asian shares gained on expectations of a potential de-escalation of trade tensions following the meeting between U.S. President Trump and Chinese President Xi Jinping next week. South Korea's Kospi closed up 2.5%, led by technology-related stocks. Japan's Nikkei was up 1.4%, while the tech-heavy ChiNext Price Index closed 3.6% higher. Shanghai and Shenzhen were up 0.7% and 1.4%, respectively. Hong Kong's Hang Seng index was up 0.7%.European markets were mostly up with Germany's DAX and London's premier FTSE 100 index both up around 0.08%, while the STOXX 600 index was up 0.2%. However, France's CAC 40 index was down 0.1%, having initially opened 0.25% higher. Signify was one of the biggest fallers in Europe after the Dutch lighting group cut full-year guidance on a softer-than-expected market and demand pressures in its key business.Oil prices fell slightly after rallying the day before on additional U.S sanctions on Russia's energy sector. Brent crude was down 0.6% to $65.60 a barrel and WTI was down 0.5% to $61.46 a barrel. The impact of the sanctions will be determined by whether Russia can find an alternative buyer for the crude it has been sending to India, ANZ analysts write. China has been buying Russian crude but might be reluctant to boost purchases further, they add.Gold prices fell further after a sharp correction earlier this week. In early trade, futures in New York were down 0.9% to $4,108.50 a troy ounce. The metal is heading for a weekly loss after a selloff following gold hitting an all time high on Monday, MUFG's Soojin Kim writes. The fall was triggered by profit taking and coincided with the largest single-day outflow from gold-backed exchange-traded funds in five months, Kim writes.U.S. Treasury yields rose in Asian trade, albeit at a slowing pace, as markets await September CPI data. The data is a key input ahead of the Federal Reserve's meeting next week, in particular in the data vacuum prompted by the government shutdown. Meanwhile, sentiment has improved on confirmation that Trump and Xi will meet on Oct. 30, boosting hopes of easing trade tensions. The two-year Treasury yield rose 0.9 basis points to 3.490%, the 10-year Treasury yield was up 1.2 basis points at 4.000% and the 30-year yield rose 1.2 basis points to 4.582%, according to Tradeweb.The dollar rose ahead of U.S. inflation data later. Economists in a WSJ survey expect inflation to rise to 3.1% year-on-year in September from 2.9% in August. "We see risks skewed towards a higher reading but think the bar for the Federal Reserve skipping its planned rate cut on October 29 is very high," Danske Bank analysts say in a note. The DXY dollar index rose 0.1% to 99.036.Sterling fell against a stronger dollar but holds steady versus the euro, barely reacting even after data showed U.K. retail sales unexpectedly rose in September. Retail sales grew 0.5% compared with a month ago. Economists in a WSJ survey expected a 0.4% decline. Sterling fell 0.1% to $1.3314 compared with $1.3325 before Friday's data. The euro trades flat at 0.8713 pounds, little changed from levels before the data.Bitcoin rose after the White House confirmed that President Trump would meet with Chinese leader Xi next week in South Korea. Bitcoin rose 1.6% to $111,390, LSEG data show. It has recovered from last Friday's near four-month low of $103,659 but remains well below the Oct. 6 record high of $126,223.Write to Barcelona Editors at [email protected]