Aurelia Butler

According to Refinitiv Lipper, global equity funds lured $2.75 billion in their first weekly net purchase since June 22. GRAPHIC: Fund flows: Global equities, bonds and money market (https://fingfx.thomsonreuters.com/gfx/mkt/dwpkrwkykvm/Fund%20flows-%20Global%20equities%20bonds%20and%20money%20market.jpg) The data released on Wednesday showed U.S. consumer prices were unchanged in July, which has raised expectations of a 50 bps hike by the Federal Reserve in its September meeting, rather than a 75 bps which was widely anticipated earlier. A report showing a pick-up in the U.S. services industry also bolstered sentiment. U.S. and Asian equity funds received $4.21 billion and $0.69 billion respectively, although European funds had outflows of $2.52 billion.Among sector funds, consumer staples and healthcare gained $535 million and $389 million respectively, but tech and financials lost $412 million and $386 million respectively. GRAPHIC: Fund flows: Global equity sector funds (https://fingfx.thomsonreuters.com/gfx/mkt/zjvqkbnmavx/Fund%20flows-%20Global%20equity%20sector%20funds.jpg) Investors purchased about $5 billion of global bond funds, marking a second weekly inflow in a row.Government bond funds attracted a net $2.25 billion in a second weekly inflow, however, investors sold short- & medium-term, and high yield funds of $1.66 billion and $47 million respectively. GRAPHIC: Global bond fund flows in the week ended Aug 10 (https://fingfx.thomsonreuters.com/gfx/mkt/gkvlgobkkpb/Global%20bond%20fund%20flows%20in%20the%20week%20ended%20Aug%2010.jpg) Money market funds recorded outflows of $12.51 billion, the biggest in six weeks.Data for commodities funds showed energy funds attracted $101 million in net buying, the first weekly inflow in seven weeks, but precious metal funds lost $394 million.An analysis of 24,438 emerging market funds showed bond funds attracted purchases worth $766 million while equities notched up a fourth weekly capital outflow of $488 million. GRAPHIC: Fund flows: EM equities and bonds (https://fingfx.thomsonreuters.com/gfx/mkt/xmvjombyepr/Fund%20flows-%20EM%20equities%20and%20bonds.jpg) More

NEW DELHI (Reuters) -India’s consumer inflation dipped to 6.71% in July, easing for the third month in a row, helped by a slower increase in food and fuel prices and adding to expectations that the central bank may rein in the pace of its policy rate hikes next month.The year-on-year figure, published on Friday by the National Statistics Office, was marginally lower than the 6.78% forecast by economists in a Reuters poll. But it remained above the central bank’s 2-6% tolerance band for a seventh month in a row.After months of eye-watering inflation readings across much of the world, policymakers are wondering if they may have seen the peak of price pressures given recent evidence of moderation in Japan, China and the United States.However, few are willing to make definitive calls with the Ukraine war and pandemic continuing to tie up supply lines.”Inflationary pressures have eased,” a government source said on Thursday, adding that the government and central bank would continue to take steps to bring retail inflation below 6%. Economists said they expect the Reserve Bank of India (RBI) to raise policy rate by at least 25 basis points next month as real interest rates are still negative. The RBI’s Monetary Policy Committee has lifted the key repo rate by 140 basis points since May, including by 50 bps this month, while the government imposed restrictions on export of crops including wheat and sugar while cutting fuel taxes.Food inflation, which accounts for nearly half the CPI basket, was 6.75% in July, also easing for the third month in a row. Prices of edible oil and some metals fell.Core inflation, excluding volatile food and energy prices, was estimated at 5.79-5.80% in July, lower than 5.96- 6.2% estimates in June, said two economists, after the data release.India does not release core inflation data. More

Import prices fell by a more-than-expected 1.4% last month after rising 0.3% in June, the data showed. It was the largest monthly drop since April 2020. In the 12 months through July, import prices increased 8.8% after rising 10.7% in June.Economists polled by Reuters had forecast import prices, which exclude tariffs, would decline 1.0% from June.The report follows other tentative signs earlier this week that inflation has peaked, with U.S. consumer prices unchanged in July due to a sharp drop in the cost of gasoline, after advancing 1.3% in June, although underlying price pressures remained elevated. Producer prices also declined last month on the back of lower energy costs.The Federal Reserve is mulling whether to raise its benchmark overnight lending rate by another 50 or 75 basis points at its next policy meeting on Sept. 20-21, as the U.S. central bank battles to cool demand across the economy and bring inflation back down to its 2% goal. The Fed has raised its policy rate by 225 basis points since March.Imported fuel prices dropped 7.5% last month after surging 6.2% in June. Petroleum prices declined 6.8%, while the cost of imported food fell 0.9%, the largest one-month drop since November 2020.Excluding fuel and food, import prices dropped 0.5%. These so-called core import prices decreased 0.6% in June. They rose 3.8% on a year-on-year basis in July. The strength of the U.S. dollar is helping keep a lid on core import prices.The dollar has gained around 10% against the currencies of the United States’ main trade partners since the beginning of the year.The report also showed export prices fell 3.3% in July after accelerating 0.7% in June. Prices for agricultural exports declined 3.0%, with the fall led by lower prices for soybeans, wheat and cotton. Nonagricultural export prices fell 3.3%. Export prices rose 13.1% on a year-on-year basis in July after increasing 18.1% in June. More

(Reuters) -U.S. stock index futures rose on Friday, setting the S&P 500 and the Nasdaq for a fourth straight week of gains on easing bets of another super-sized interest rate hike by the Federal Reserve.The S&P 500 is up 15% from its mid-June low, with the latest boost coming from a slower-than-expected rise in consumer prices and a surprise drop in producer prices in July.The benchmark index is within sight of a 50% retracement of its bear market loss and investors are watching the 4,231 level. The index last closed at 4,207.27. “The major indices are trading near highs going back to May and June and those highs are now serving as near-term resistance,” said Adam Sarhan, chief executive of 50 Park Investments.”At the same time, you have the never-ending tug of war going on between the bulls and the bears that is causing the market to just get a little bit weaker up here.”While policymakers remain firm about a further tightening in monetary policy until inflation pressures fully abate, traders see a 63.5% chance of the Fed raising rates by 50 basis points next month instead of a 75 basis points hike. [FEDWATCH]The Fed has raised its policy rate by 225 basis points since March as it battles to cool demand without sparking a sharp rise in layoffs.High-growth and technology stocks such as Tesla (NASDAQ:TSLA) Inc and Amazon.com Inc (NASDAQ:AMZN) rose 0.9% each in trading before the bell as investors flocked back to riskier assets. Growth stocks have underpeformed their value counterparts so far this year on worries that rising Treasury yields due to aggressive rate hikes will pressure their valuation. Investors bought $7.1 billion in equities in the week to Wednesday, according to a Bank of America (NYSE:BAC) note, with U.S. growth stocks recording their largest weekly inflow since December last year.Meanwhile, banks looked set to extend their rally for sixth straight week, with JPMorgan Chase & Co (NYSE:JPM) and Goldman Sachs (NYSE:GS) advancing in premarket trading. At 8:45 a.m. ET, Dow e-minis were up 137 points, or 0.41%, S&P 500 e-minis were up 19 points, or 0.45%, and Nasdaq 100 e-minis were up 69.5 points, or 0.52%.Rivian Automotive Inc rose 1.4% as the electric-vehicle maker reported better-than-expected second quarter revenue.The University of Michigan’s preliminary survey of consumer sentiment for August is expected at 10:00 a.m. ET. More