US markets are bracing for a flurry of economic data releases today, hoping for insights into consumer health before the Thanksgiving holiday. The data comes amid increased speculation about a potential Federal Reserve interest rate cut as early as December. Futures markets are pricing in a greater than 70% chance of a rate cut next month, a significant jump from just a week ago.
The shift in expectations has already impacted markets, pulling Treasury yields lower and fueling a substantial rally on Wall Street. However, stock futures have retreated slightly overnight as investors await key consumer data. The delayed September retail sales and producer price figures will be released, alongside the latest consumer confidence data. Best Buy, a leading retailer of consumer electronics, reports earnings.
Global markets are also reacting to developments in US-China relations. President Trump described ties with China as “extremely strong” after a call with President Xi Jinping. Chinese stocks responded positively, rising 1%, while the offshore yuan reached its strongest level against the dollar in over a year. Elsewhere, tech giant Softbank saw its shares plunge 10% in Tokyo, despite Japan’s Nikkei index remaining positive.
In other corporate news, Amazon announced plans to invest $15 billion in data centres in Northern Indiana, coinciding with its intention to invest up to $50 billion to expand AI capabilities for U.S. government clients. Meanwhile, UK finance minister Rachel Reeves is expected to announce further tax increases in her budget on Wednesday.
