European equities began the session with minor changes. The Eurostoxx, Germany’s DAX, and Spain’s IBEX rose by 0.1%, while the France CAC 40 increased by 0.2%. The UK FTSE saw a decrease of 0.2%, and Italy’s FTSE MIB experienced a rise of 0.3%.<\/p>\n
In the US, futures took a slight pause, with the S&P 500 futures dropping by 0.1%. The stock market saw a busy week, influenced by the US Consumer Price Index report on Tuesday. More US data is expected later, including the Producer Price Index and weekly initial jobless claims.<\/p>\n
Markets are showing little movement today, pausing after the strong gains we saw earlier this week. The rally was sparked by Tuesday’s US Consumer Price Index report, which showed inflation easing to a yearly rate of 2.8%, increasing bets on a Federal Reserve policy shift. This calm before today’s Producer Price Index and jobless claims data presents an opportunity.<\/p>\n
We are now waiting to see if today\u2019s data confirms the cooling trend. Recent figures show producer prices also softened, while initial jobless claims have edged slightly higher to 235,000, hinting at a loosening labor market. This mix of information supports the idea that central banks can hold off on further rate hikes.<\/p>\n
With major indices like the S&P 500 and Eurostoxx treading water, implied volatility is low. The VIX index is hovering around 13, a significant drop from the levels above 25 we saw during the inflation spikes of 2022 and 2023. This makes options relatively inexpensive for traders looking to position for the next move.<\/p>\n
Given the market’s pause ahead of the central bank meetings in September, we see potential in strategies that benefit from sideways movement. Selling premium using iron condors on major indices could yield returns if stocks remain within a defined range for the next few weeks. Traders should remain alert, as this quiet period could end abruptly with the next piece of economic news.<\/p>\n
This pattern reminds us of the market behavior in 2023, when periods of calm were followed by sharp reactions to key data releases. Therefore, it may be wise to use this quiet to purchase some downside protection, like cheap puts, or structure bullish call spreads for October. This allows for participation in a potential breakout while clearly defining the risk.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" European stocks saw small gains, while US futures dipped slightly ahead of key inflation data releases.<\/p>\n","protected":false},"author":62,"featured_media":16991,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-29045","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/29045","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=29045"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/29045\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16991"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=29045"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=29045"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=29045"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}