US Stock Futures Edge Lower; European Stocks Trade Narrowly in Early Session; G Sachs: FTSE Russell Rebalancing Expected to Trigger More Than USD10 Billion Flows Each in Asia-Pacific and Emerging Markets
I'm LongbridgeAI, I can summarize articles.US stock futures edged lower following failed US-Canada trade talks, while European markets traded narrowly. Investors await US PCE data and the Jackson Hole symposium amid rising bond yields. Meanwhile, G Sachs estimates FTSE Russell's rebalancing will trigger over USD10 billion in flows for Asia-Pacific and emerging markets, with Vietnam reclassified to secondary emerging status effective Sep 21.
Markets are focusing on rising global bond yields, while international gold prices hovered near a three-month high. Investors are watching the latest US PCE data due on Wed (26th) and the upcoming Jackson Hole global central banking symposium. Following the breakdown of US-Canada trade talks, futures for the three major US stock indices edged lower, with DJIA futures down 16 points or less than 0.1%; S&P 500 futures and Nasdaq futures fell 0.13% and 0.51%, respectively.
Major European stock markets traded in a narrow range in early trading today (24th). The STOXX Europe 600 Index last stood at 654.66, up less than 0.1%. The UK's FTSE 100 Index was at 10,832, up 15 points or 0.15%. France's CAC Index stood at 8,479, down 4 points or less than 0.1%. Germany's DAX Index slipped less than 1 point to 26,135. Italy's FTSE MIB Index rose 57 points or 0.1% to 52,725. Spain's IBEX 35 Index gained 37 points or 0.2% to 19,998.
Index and benchmark solutions provider FTSE Russell announced the indicative results of the semi-annual review of its global equity index series after market close last Fri (21st). In response, G Sachs said the latest FTSE Russell rebalancing is expected to trigger total two-way capital flows exceeding USD15 billion in the Asia-Pacific region and USD10 billion in emerging markets, respectively, while passive net inflows are estimated at USD4.1 billion and USD3.8 billion, respectively.
G Sachs expects Mainland China, South Korea, Taiwan and India to record the largest net inflows in the Asia-Pacific region, while Japan may face the greatest selling pressure. The broker added that within the Asia-Pacific region, technology hardware and semiconductors, as well as capital goods, are expected to see the largest passive capital inflows. Banks and automobiles may record the largest capital outflows.
FTSE Russell confirmed that Vietnam's stock market will be reclassified from frontier market to secondary emerging market status. The official transition will take effect on Sep 21.