Before the release of the U.S. core PCE data on Friday, traders remained cautious as the data affects expectations for the Federal Reserve's rate cut pace. Although Powell's dovish remarks at Jackson Hole reinforced rate cut expectations, the market anticipates that the U.S. core PCE for July may rise to 2.9%, the fastest growth in five months. If inflationary pressures resurface, the pace of rate cuts remains uncertain.
On Friday, August 29, U.S. stock futures fell slightly, and European stocks retreated by more than 0.1% after several countries released CPI data. If the trend in European stocks continues, this week will mark the first weekly decline in nearly four weeks. Concerns about a potential collapse of the French government and risks to the independence of the Federal Reserve weighed on European stock performance this week.
In other assets, the U.S. and European bond markets weakened, with the 10-year U.S. Treasury yield rising by 1 basis point. The U.S. dollar rose by 0.1%, likely recording its first weekly gain in nearly four weeks. Oil prices fluctuated in the short term due to the ongoing Russia-Ukraine situation, retreating on Friday but still declining overall for the month due to market concerns about oversupply. Iron ore prices are expected to achieve a two-month consecutive increase. Singapore iron ore futures stabilized at around $104 per ton, with a nearly 5% cumulative increase in August.
The following are the trends of core assets:
<blockquote>
U.S. stock futures fell slightly, with S&amp;P 500 futures down more than 0.1%.
In pre-market trading, Dell Tech fell about 6%, with the company's Q2 revenue and profit exceeding expectations, but Q3 profit guidance falling short. Chinese concept stocks were mixed, with XPeng down about 1% and Li Auto up about 1%.
European stocks broadly declined, with the pan-European index down more than 0.1%, Germany's DAX index down more than 0.1%, the UK's FTSE 100 index down more than 0.2%, and France's CAC 40 index down more than 0.2%.
The Nikkei 225 index closed down 0.3%. Japan's Topix index closed down 0.5%. South Korea's Seoul Composite Index closed down 0.3%.
The benchmark 10-year U.S. Treasury yield rose by more than 1 basis point, while the 2-year U.S. Treasury yield fell by less than 1 basis point.
The U.S. dollar index rose by more than 0.1%. The euro fell by more than 0.1%. The yen fell by less than 0.1%. The offshore yuan fell by more than 0.1%. Due to concerns about tariffs, the Indian rupee fell below 87.96 against the U.S. dollar.
Spot gold fell about 0.2% to below $3,415. Spot silver fell by more than 0.4%.
U.S. oil fell by more than 0.7% to below $64.15, while Brent oil fell by about 0.8% to below $68.10.
Bitcoin fell by more than 2% in 24 hours, and Ethereum fell by more than 4% in 24 hours.
Iron ore prices are expected to achieve a two-month consecutive increase. Singapore iron ore futures stabilized at around $104 per ton, with a nearly 5% cumulative increase in August.
</blockquote>
The market maintains a wait-and-see attitude, with U.S. stock futures slightly down.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/469f4a30-6ab6-4fd9-99e4-cb75ffc6a9f3.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/469f4a30-6ab6-4fd9-99e4-cb75ffc6a9f3.png"/>
Swissquote Bank analyst Ipek Ozkardeskaya wrote: &#34;As the market's focus shifts to weak labor data, unless there is a significant unexpected upward movement in inflation, it will not disrupt the market's expectations for a rate cut in September, and there may be another cut before the end of the year. However, it cannot be guaranteed that inflation will be controlled.&#34;
The US Dollar Index rose by about 0.1%.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/9cc30123-8a94-482a-a606-21564ddd48c0.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/9cc30123-8a94-482a-a606-21564ddd48c0.png"/>
The benchmark 10-year US Treasury yield increased by more than 1 basis point.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/e6a46870-e06a-4df1-8573-1be83860becd.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/e6a46870-e06a-4df1-8573-1be83860becd.png"/>

DELL

XPEV

09868

02015

U.S. stock futures fell slightly, with S&P 500 futures down more than 0.1%. In pre-market trading, Dell Tech fell about 6%, as the company's Q2 revenue exceeded expectations, but Q3 profit guidance fell short of expectations. Chinese concept stocks were mixed, with XPeng down about 1% and Li Auto up about 1%. Due to tariff concerns, the Indian rupee fell against the U.S. dollar, breaking below 87.96, reaching a record low. Iron ore prices are expected to achieve a two-month consecutive increase. Singapore iron ore futures stabilized at around $104 per ton, with a cumulative increase of nearly 5% in August

- Traders remain cautious ahead of the U.S. core PCE data release, which could influence expectations for Federal Reserve rate cuts.  
- U.S. stock futures dipped slightly, while European stocks fell after multiple countries reported CPI, with concerns over the French government and Fed independence impacting market performance.  
- The 10-year U.S. Treasury yield rose by over 1 basis point, and the dollar index increased by approximately 0.1%, indicating a mixed outlook for various assets.

Wallstreetcn

Dell Tech

XPeng

XPENG-W

Li Auto

LI AUTO-W

Before the PCE inflation announcement, European and American stock markets were weak, with Dell Tech falling 6% in pre-market trading, the Indian rupee hitting a new low against the US dollar, and gold slightly declining