U.S. Stock futures are down this morning indicating the day will begin on a negative. During the premarket session, S&P 500 Futures Index (INDEXCBOE:SPX) fell 0.3% and Nasdaq Futures INDEXNASDAQ:NDX) are down 0.2%.
U.S. inflation data will set the tone
Some of the key factors that could influence market momentum today include oil prices and a series of economic data reports. The Commerce Department will report inflation numbers for April later today amid expectations of a 0.3% increase in the consumer price index. Market analysts project core inflation to rise by 0.2% with a likely 2.1% yearly inflation rate. Any upside in these numbers will support the case for a rate hike. Alongside this, a series of other data releases are due today, including industrial production, capacity utilization, housing starts and building permits.
Meanwhile, several Federal Reserve speakers will also address an event in Washington, D.C., giving their views on the economic environment. San Francisco Federal Reserve President John Williams and Atlanta President Dennis Lockhart will participate in the event.
Inflation slips in U.K.
Across the globe, U.K. inflation was reported at 0.3% for March, below estimates of 0.5%. The inflation drop is believed to be driven by a fall in airfares and clothing prices. The report underlines continued pressure on the Bank of England to rev up price growth according to mainstream economists, though this would of course hurt consumers.
Besides this, global stocks showed resilience mostly driven by oil prices, which were seen hovering near $50 per barrel levels. Oil prices are finding support from prolonged supply outages from Nigeria, Libya, and Venezuela. A remarkable decline in U.S. shale output alongside a production cut from Canada following a wildfire has also helped settle oversupply concerns.
Rally in oil appeared disrupted during European hours as traders booked profits. However, analysts are firm that a continued production halt will help the commodity to breach $50 soon. Inventory report from the American Petroleum Industry will be important to markets today as well.