1. On Thursday, September 11, US stock index futures traded higher in pre-market hours. As of press time, Dow futures gained 0.24%, S&P 500 futures rose 0.24%, and Nasdaq futures advanced 0.29%.
2. As of press time, Germany's DAX index climbed 0.21%, the UK's FTSE 100 gained 0.47%, France's CAC 40 surged 0.84%, and the Euro Stoxx 50 rose 0.38%.
3. As of press time, WTI crude oil declined 1.12% to $62.96 per barrel. Brent crude fell 0.98% to $66.83 per barrel.
Market Focus
Tonight's US August CPI data poses major test as bond markets reassess Fed aggressive rate cut bets.
Tonight's release of US August CPI data will be closely watched, as bond traders prepare for potential shifts that could weaken their bets on aggressive Federal Reserve rate cuts starting this month and continuing through 2026.
Weak employment data and modest producer price figures have led traders to view a 25 basis point rate cut at the Fed's September 16-17 meeting as virtually certain, with potentially two more such cuts by year-end. However, market sentiment regarding economic risk balance has shifted, with current positioning suggesting officials may ultimately lower rates below what's considered neutral, making policy stimulative to support growth and avoid recession.
Republicans accelerate push to install Miran at Fed ahead of next week's FOMC meeting.
The Senate Banking Committee voted along party lines Wednesday to advance the nomination of Trump advisor Stephen Miran for a short-term Fed board position. Republicans are fast-tracking efforts to have him sworn in before next week's policy meeting.
According to sources, Wednesday's 13-11 vote means Miran could face a full Senate confirmation vote as early as Monday. The Federal Open Market Committee meets September 16-17 and is expected to announce its first rate cut since December, given slowing job growth momentum.
Miran, currently Chairman of the White House Council of Economic Advisers, told senators he would join the Fed on unpaid leave.
Rate cut expectations overcome economic concerns! Survey shows US stocks poised for strong year-end finish.
According to the latest Markets Pulse survey, US equity markets are set to end the year on an upward trajectory, shaking off inflation risks and weak employment outlook concerns.
In a September 5-10 survey, two-thirds of 116 respondents indicated the S&P 500 will continue rising through 2025, with most expecting signals of further Fed rate cuts by year-end to drive the index higher.
Last week's significantly below-consensus nonfarm payroll data caught traders off guard. The weak figures cast shadows over the US economy, prompting bets on three Fed rate cuts this year starting September 17. The disappointing data also reignited debate about potential 50 basis point cuts next week.
Goldman CEO: US economy showing weakness, tariff chaos weighing on growth.
Goldman Sachs CEO David Solomon joined other banking executives in warning about US economic slowdown, stating President Donald Trump's trade war is impacting growth prospects.
"There's no question that some recent employment data has shown signs of economic softening, and this trend warrants close attention," Solomon said in a Wednesday interview. Despite August's unexpected decline in US wholesale inflation, Solomon noted he still observes signals of persistently elevated prices.
"Trade policy remains in a dynamic process of negotiation and implementation, with uncertain ultimate direction," he emphasized. "In my view, this is undoubtedly having negative effects on economic growth."
Goldman "going wild": Strongest IPO week in four years approaches as tech stock offering feast resumes.
Goldman Sachs CEO David Solomon said Wednesday the firm expects its busiest IPO week since July 2021. This follows Swedish "buy now, pay later" lender Klarna's highly anticipated New York IPO earlier that day, setting the stage for more fintech listings.
"We will conduct more IPOs this week, with Goldman's IPO activity exceeding any period since July 2021," Solomon emphasized. As markets rebound and tech IPOs surge on debut day, investor confidence in new offerings has recovered—confidence that had plummeted in April due to global market turmoil from massive US tariff increases.
Individual Stock News
Rare retail merger: RaceTrac acquires Potbelly (PBPB.US) for $566 million at 47% premium.
Convenience store operator RaceTrac agreed Wednesday to acquire sandwich chain Potbelly for approximately $566 million in a rare cross-sector deal.
Family-owned RaceTrac operates convenience stores under the RaceTrac, RaceWay and Gulf brands. According to a statement, the company will launch a tender offer at $17.12 per share for all outstanding Potbelly shares.
All Potbelly directors and executives have agreed to sell their holdings, representing about 11% of issued common stock. Following the acquisition announcement, Potbelly shares closed up 31.32% Wednesday at $16.98. The transaction price represents a 47% premium to the company's 90-day volume-weighted average price.
Barrick Gold (B.US) sells Canadian Hemlo mine for $1.09 billion.
Barrick Gold will sell its Canadian Hemlo gold mine to Carcetti Capital for up to $1.09 billion. Total proceeds include $875 million in cash consideration, $50 million worth of HMC stock, and a production and tiered gold price-linked cash payment structure starting January 2027 for five years, up to $165 million maximum.
"The sale of the Hemlo mine at an attractive valuation marks the end of Barrick's long and successful chapter at this operation and highlights our disciplined focus on value creation through our Tier One gold and copper portfolio," said Barrick President and CEO Mark Bristow. The transaction is expected to close in Q4 2025.
Starbucks (SBUX.US) plans to sell China business control as Carlyle and consortium enter final bidding round.
Five sources report that global investment giants Carlyle Group and EQT, along with regional players HongShan Capital Group (HSG) and Boyu Capital, are preparing final bids for control of Starbucks' China operations.
Sources indicate final bids for Starbucks China are expected in early October, with Starbucks selling controlling interest in its China business. Three sources said Starbucks has requested binding offers by early October, with one adding that agreements could be reached by month-end at the latest.
US IPO market continues heating up! Klarna (KLAR.US) surges up to 43% on debut day.
Financial services company Klarna Group plc (KLAR.US) surged as much as 43% on its trading debut, ultimately closing up 14.55% at $45.82. The stock priced its IPO at $40 per share, above the marketed range, with double-digit oversubscription leaving approximately half of potential subscribers empty-handed.
The company and some investors raised $1.37 billion through the IPO, indicating continued room for new issue market development.
Key Economic Data and Events Schedule
8:30 PM Beijing Time: US August CPI annual rate (unadjusted %), US initial jobless claims for week ending September 6 (in 10,000s).
8:15 PM Beijing Time: European Central Bank announces interest rate decision.
8:45 PM Beijing Time: ECB President Lagarde holds monetary policy press conference.
Earnings Preview
Friday morning: Adobe (ADBE.US)
