investingLive Americas market news wrap: PCE report cools inflation fears

• US August PCE core +2.9% y/y vs +2.9% expected
• US UMich final September consumer sentiment 55.1 vs 55.4 expected
• Canada MoM GDP for July 0.2% versus 0.1% expected
• Barkin: The key to consumer spending is whether people lose their jobs or not
• Fed’s Bowman: Fed to shift toward proactive forward looking approach
• Trump told Zelensky the US is open to ending restrictions on long-range Russia strikes
• Shares of Electronic Arts on a report the company could go private
• Miran overstated immigration argument, says the economist who wrote the paper
• BOE Dhingra: Restrictive monetary policy risks damaging the economy
• Atlanta Fed Q3 GDPNow +3.9% vs +3.3% prior

Markets:

• S&P 500 up 0.6%
• WTI crude oil up 28-cents to $65.26
• US 10-year yields up 0.7 bps to 4.18%
• Gold up $19 to $3767
• Bitcoin flat at $109,298
• GBP leads, USD lags

There was a lesson in today’s reaction to the PCE report: The market is afraid of rising inflation but steady inflation is ok. PCE was in-line and that led to a quick rise in stock futures along with a smaller slide in the US dollar.

For stock markets, there was a 30 point jump in the S&P 500 immediately but it was pared midday before late buying kicked in. That stopped a three-day slide in equities but still left them lower on the week.

In FX, the rally in the dollar stopped and we saw steady bids in other currencies, particularly in cable is it rose to 1.3407 from 1.3350. That recouped roughly half of yesterday’s decline.

Bonds were choppy as they sold off early but finished flat. The range in 10s was 4.15-4.20%.

A clue for the bid in bonds may have come from commodity markets, which were suspiciously strong. There was some talk about Hegseth calling all the generals for a meeting in Virginia, despite newswires downplaying that. The oil market might have also been sniffing out some worries about Ukraine and Russia escalation as well, in light of a report that the US could authorize deeper strikes on energy infrastructure.

Have a great weekend. Next week is jobs week.

This article was written by Adam Button at investinglive.com.