US markets are quietly awaiting Friday's PCE inflation data. The S&P 500 rose 0.2 percent yesterday, with volatility still very low. US stock futures are down about 0.3 percent after Micron (-8 percent at the close) reported quarterly results that missed market expectations (although analysts' forecasts were met).
The technology company is broadly diversified, so it is seen as a good indicator of the chip sector's vitality, followed by Micron, followed by tech stocks in Japan (-0.9 percent) and South Korea (-0.4 percent).
A strong dollar pushes currency pairs. Longer holdings of high interest rates and still uncertain prospects for rate cuts are keeping the US dollar high. The exchange rate between the US dollar and the Japanese yen has crossed the 160 mark and is currently at its highest level since 1986. Interest rates near zero continue to weaken the Japanese currency and increase the chances of central bank rate hikes and foreign exchange intervention. The euro is also weak and still unable to "shake off" the political risk of the French parliamentary elections.
Today is the first US presidential debate between Joe Biden and Donald Trump. Unlike previous debates, this one will not have a live audience, and while one candidate is speaking, the other's microphone will be muted. Different rules should make this 90-minute debate more productive and less sensational. Much attention should be paid to immigration, abortion, the war in Ukraine and Gaza, as well as topics important to Americans, according to polls, such as the economy and inflation. The trials of Trump and Biden's son will probably not escape discussion either.
