US pre-open: Tentative start expected on Wall Street

(Sharecast News) - US equity indices were pointing to small gains (if any) in pre-market trade, with the focus back on the Federal Reserve following some mixed inflation data last week. Futures on the Dow Jones were up 38 at 35,389, the S&P 500 looked set to open more or less flat at 4,486, while the Nasdaq was trading up 24 at 15,119.

Mixed US inflation data last week did little to settle investors' concerns about the economy. The monthly rate of consumer price inflation picked remained steady at 0.2% in July, but producer price inflation rose more than forecast to 0.3% from a revised 0% in June - a concern for those who had hoped that a possible slowdown in price growth could prompt the Federal Reserve to pause hiking interest rates at its next meeting.

That said, Goldman Sachs predicted over the weekend that the Fed is unlikely to hike rates again this year, forecasting the bank reckons to make its first rate cut the second quarter of 2023.

A close eye will be kept on the publication of the minutes from the last Federal Open Market Committee meeting, scheduled for release on Wednesday, for any hint of what's to come.

Also expected this week are US retail sales figures for July on Tuesday, and housing starts and industrial production data on Wednesday.

Meanwhile, market sentiment on Monday is likely to be dampened by continuing concerns over China. Stocks in Asia fell sharply overnight on the back of renewed concerns about China's property sector. Hong Kong's Hang Seng Index slumped 1.8% after Chinese developer Country Garden announced it was suspending the trading of 11 onshore bonds. The news follows a warning last week from the company that it expects to lose $7.6bn in the first half of 2023.

In company news, US Steel will be in focus after the company rejected a takeover offer from rival Cleveland-Cliffs for $7bn.

Retail heavyweights will be reporting their second-quarter earnings this week, with numbers expected from Home Depot, Walmart and Target.