MARKET WRAPS
Watch For:
EU PPI data; services PMI data for EU, U.K., Germany, France, Italy; trading updates from Ashtead Group, M&G
Opening Call:
European stock futures gained despite a negative lead from Asian stock benchmarks; U.S. Treasury yields and the dollar edged higher; oil futures fell, and gold gained.
Equities:
Stock futures in Europe edged higher early Wednesday. U.S. stocks fell Tuesday in their first trading day of September, historically the worst month for the big three indexes, after renewed inflation and debt concerns sparked a global bond selloff.
Adam Turnquist, chief technical strategist for LPL Financial, points to an investing landscape "clouded by uncertainty" over tariffs, inflation, labor market dynamics, and changes to monetary policy.
These factors could "contribute to elevated volatility and a more colorful backdrop of price action for the broader market," Turnquist said.
The big event of the week will be Friday's U.S. employment report. Wall Street will want to see signs of resilience in the labor market. A weak report could threaten the market's summer rally.
Forex:
The dollar faces headwinds, but it could still show strength going forward, Capital.com's Daniela Hathorn said. The greenback is weighed down by bond markets pricing interest rate cuts now and a cloudy long-term outlook.
However, if "the backdrop turns risk-off, the dollar's safe-haven role can still dominate," she said. Moreover, "higher real long-end yields can be USD-supportive on select crosses, especially low-yielders like JPY and CHF, even as the broad dollar softens."
Bonds:
Strong demand for the 4.75% October 2035 U.K. government bond, or gilt, at Tuesday's syndication shows that gilts remain attractive, eToro's Lale Akoner said. "The fact that demand was more than 10 times oversubscribed suggests gilts are firmly back on the radar as a yield play." However, rising gilt yields signal that investors are worried about the sustainability of U.K. public finances and inflationary risk, Akoner said.
Energy:
Oil futures were lower. Prices will likely remain supported this week as traders weigh supply risks after fresh signals of possible Russian sanctions, and signs that OPEC+ will not be rushing to raise output further, the UOB Global Economics & Markets Research team said.
Metals:
Gold's surge in recent days, to a new record high, is mostly likely due to haven demand, according to Commonwealth Bank of Australia analyst Vivek Dhar.
"This is likely tied to concerns over the Fed's independence and the legality of U.S. tariffs," Dhar said.
CBA's forecast for gold to average $3,500/oz in 4Q is already looking too low. A price around $3,650/oz instead next quarter is "now a real possibility," he said.
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Copper edged higher amid positive sentiment. ANZ Research analysts point to reports indicating new policies in China to boost demand for refined copper. Scrap metal is likely to attract lower subsidies and has already prompted some recyclers to reduce their output, they said. "This will ultimately lead to an increase in demand for copper cathodes and put upward pressure on domestic prices," they added.
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Iron ore gained as investors track the Chinese government's plans regarding new steel capacity. The government is reportedly looking to close inefficient furnaces, said HSBC economists. Government-led measures to trim steel production could help lift prices as they would be more effective than only industry-led voluntary production cuts, which could take much longer, they said.
TODAY'S TOP HEADLINES
Behind This Season's Bumper Earnings: Job Cuts, Price Hikes, Glum Workers
American companies are once again beating profit expectations, but this time around they aren't banking on blockbuster consumer spending to make it happen.
Instead, the latest batch of quarterly earnings are getting a lift from managers who are squeezing out costs, boosting productivity and turning to new technologies. Companies from Monster Beverage to Estée Lauder said they are holding down hiring, often while finding new ways to get employees to work more efficiently. And they are raising prices when they can.
Ocean Shipping Rates Sink as Importers Balk at Trade Upheaval
Ocean shipping rates from China to the U.S. West Coast have fallen 68% from their June high, a sign this year's peak shipping season was earlier and shorter than usual.
The rate slide also signals that some U.S. retailers and manufacturers are taking a cautious approach to new orders ahead of the year's busy fall and winter shopping periods amid tariff uncertainties, shifting trade policies and concerns about consumer spending.
Meet the Woman Trump Calls Europe's Most Powerful Leader
BRUSSELS-With geopolitical tensions flaring in June, European Commission President Ursula von der Leyen wanted to get President Trump alone at a Group of Seven summit in Canada. She surprised his security team, taking Trump by the arm and leading him to a sofa for a chat. There, the two discussed Ukraine, China and trade.
It was one of the moments, her aides say, that has helped her bridge a divide with Trump and thaw frosty trans-Atlantic relations.
Russia, China Close In on Pipeline Deal, Leaving Beijing With the Upper Hand
Russia and China advanced plans for a long-delayed natural-gas pipeline to funnel Russian fuel to the Chinese but left core terms unresolved, a sign of Beijing's growing leverage in its relationship with Moscow.
Following talks in Beijing between Russian President Vladimir Putin and Chinese leader Xi Jinping, Moscow said the two sides had signed a legally binding memorandum to build the Power of Siberia 2 pipeline, a flagship project that would boost Russia's gas deliveries to China and tighten ties between the two countries as their relations with the U.S. worsen.
Nestlé CEO's Unraveling Started With a Tip to an Employee Hotline
Nestlé Chief Executive Laurent Freixe's downfall started with an anonymous tip to an internal hotline called "Speak Up."
Freixe was having an intimate relationship with a marketing executive who reported to him, the tipster reported. The couple initially denied any relationship, the company said.
Google Dodges Worst Penalties in U.S. Antitrust Case
Google avoided harsh antitrust penalties for its conduct in the U.S. search market, with a judge barring the company from entering into exclusive deals but rejecting a forced spinoff of its Chrome browser and other sweeping remedies sought by the Justice Department.
U.S. District Judge Amit P. Mehta in a Tuesday ruling said Google can't pay to be the exclusive search engine on devices and browsers, but he allowed the company to continue making payments for distribution of its products, saying a prohibition on those agreements would harm recipients such as Apple.
Alimentation Couche-Tard Logs Lower Profit, Revenue in First Quarter
Alimentation Couche-Tard said profit and revenue fell in its fiscal first quarter, hurt by lower fuel selling prices.
The Canadian convenience-store operator's net income fell to $782.5 million, or 82 cents a share, from $790.8 million, or 83 cents a share, in the comparable quarter a year ago.
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Expected Major Events for Wednesday
00:01/IRL: Aug Ireland Services PMI
06:00/NOR: 2Q Balance of Payments
07:00/TUR: Aug CPI
07:00/TUR: Aug PPI
07:00/CZE: 2Q Wages
07:15/SPN: Aug Spain Services PMI
07:30/EU: Aug EuroCOIN indicator of euro area economic activity
07:45/ITA: Aug Italy Services PMI
07:50/FRA: Aug France Services PMI
07:55/GER: Aug Germany Services PMI
08:00/EU: Aug Eurozone Services PMI
08:30/UK: 2Q Household Finance Review
08:30/UK: Aug UK Official Reserves
08:30/UK: Aug S&P Global UK Services PMI
08:30/UK: Aug Narrow money (Notes & Coin) and reserve balances
09:00/CRO: Jul Industrial Production Volume Index
09:00/EU: Jul PPI
09:00/CYP: Aug Registered Unemployed
16:59/POL: Polish interest rate decision
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(END) Dow Jones Newswires
September 03, 2025 00:00 ET (04:00 GMT)
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