1947 ET - Japanese stocks may rise following overnight gains in U.S. technology stocks. Hopes for artificial intelligence-related demand may continue to support the market. Nikkei futures are up 1.1% at 71040 on the SGX. The dollar is at 162.56 yen, compared with Y162.24 as of Tuesday's Tokyo stock market close. Investors are focusing on developments in the Middle East and any comments on the yen's weakness by Japanese government officials. The Nikkei Stock Average rose 0.9% to 70062.32 on Tuesday. (kosaku.narioka@wsj.com)
1837 ET - Consumer spending worsened through the first quarter as rising gas prices from the war in Iran compounded existing inflation and macroeconomic concerns, Constellation Brands says. The beverage company started off its most recent quarter seeing stronger purchasing behavior, but retail food and beverage volume trends slowed as the macroeconomic picture "drove a more discerning and value-conscious consumer mindset, most notably within lower-income households," the company says. (elias.schisgall@wsj.com)
1551 ET - Treasury yields extend their increase to cap another rising quarter as investors sell off bonds amid inflation concerns and uneven progress in Middle East peace talks. Oil prices stick around pre-war levels, while indicators show the U.S. economy is still resilient. Job data in the next couple of days are expected to show employment cooling, but still at relatively healthy levels. The 10-year yield rises 0.045 percentage point to 4.420% and the two-year adds 0.031 p.p. to 4.138%. The two-year sees its largest quarterly yield advance since the fourth quarter of 2024, up 0.339 p.p. in the period. (paulo.trevisani@wsj.com; @ptrevisani)
1525 ET - Most-active live cattle futures trading on the CME finished the day down 0.5% at $2.4225 a pound. It's the third consecutive losing day for cattle futures, coming after the USDA announced the Strengthening Processing for U.S. Ranchers program, otherwise known as "SPUR". SPUR will send $500 million to smaller refineries outside of companies like Cargill and JBS, to allow them to better compete for cattle supplies. "Smaller and regional plants often lack the procurement leverage, scale efficiencies and balance-sheet strength of the largest packers," Jim Wiesemeyer of Ag Bull says in a note. Lean hogs closed trading up 0.9% to 98.15 cents a pound. (kirk.maltais@wsj.com)
1509 ET - U.S. natural gas futures pick up from two sessions of losses as a heat wave across much of the U.S. lifts demand, coupled with rising LNG exports. The electricity generating sector "is the clear primary demand driver at 47.6 Bcf/d," while LNG feedgas flows are second at 19.7 Bcf/d, Gelber & Associates says in a note. A modest warming in the 1-15 day temperature outlook adds support, although buoyant supply "remains capable of absorbing a meaningful share of that weather-driven lift," the firm adds. Nymex natural gas settles up 3% at $3.275/mmBtu, up 14% for the quarter. (anthony.harrup@wsj.com)
1400 ET - Bitcoin has been trading just above of $58,000 through the day, losing ground as the cryptocurrency market reacts to Strategy Inc.'s plans to stay solvent as bitcoin trades at multi-year lows. For long-term holders of bitcoin across the board, the situation is just getting tougher--with 45% of the supply of bitcoin in the hands of long-term holders now underwater, or worth less than it was when minted. That's roughly 7.47 million BTC that has slipped into negative profitability, which is the worst showing since 2019, according to Cex.io. The firm adds that its the first time in four months that the number of long-term holders actually decreased--signaling that they are beginning to break and sell instead of accumulating more cheap coins. (kirk.maltais@wsj.com)
1338 ET - Intervention to support the Japanese yen could end up fueling demand for the U.S. dollar. Bannockburn's Marc Chandler says that traders are buying puts as protection against a pro-yen intervention. That type of insurance would skyrocket in value if the intervention materializes. Chandler expects the profits to be used to buy dollars, doubling-down on bets that the greenback will continue to rise. The yen is at a 40-year low, at 162.64 per dollar. The greenback strengthens on robust U.S. indicators and forecasts of a hawkish Fed. The WSJ Dollar Index rises 0.1%, with the dollar gaining 0.4% against the yen and 0.1% versus the euro and the Swiss franc. (paulo.trevisani@wsj.com; @ptrevisani)
1216 ET - Treasury yields and the dollar keep rising after a batch of somewhat reassuring U.S. indicators. The Conference Board consumer confidence index ticks higher to 91.2, although below WSJ consensus of 94.2. May job openings were unchanged at 7.6 million. Fed funds futures price in 83% odds of at least one hike this year, according to CME's FedWatch tool. Employment data due the next couple of days are expected to cool down while staying at healthy levels, in WSJ surveys. The 10-year yield is at 4.402%, on pace for a third consecutive quarterly rise. The WSJ Dollar Index rises slightly, on track for its fourth consecutive quarterly gain. (paulo.trevisani@wsj.com; @ptrevisani)
1209 ET - The Bank of England has space to judge the broader impact of the Iran war on inflation before it considers the next interest-rate move, its Governor Andrew Bailey says. Markets at the start of 2026 had expected rate cuts this year, but in March that needed to be taken off the table due to the conflict, he told CNBC in an interview at the European Central Bank's Sintra conference. That led to investors raising bets on monetary-policy tightening, which, for instance, drove higher mortgage rates. "So we've had some tightening built into the curve which gives us some time to judge the pass-through," Bailey says. However, the bank isn't "complacent" in bringing inflation down to the 2% target slower than previously anticipated. (edward.frankl@wsj.com)
1159 ET - The increase in energy prices and its impact on inflation due to the Iran war has been frustrating, but it is being met by a softer economy that is weighing on prices, Bank of England Governor Andrew Bailey says. Inflation would have fallen to the bank's 2% target in April or May without the conflict, he told CNBC at the European Central Bank's forum in Sintra, Portugal. But softening economic activity in recent months, a cooling labor market and the fall in oil prices in the last few weeks suggests indirect effects are coming in lower than expected, he says. "I am encouraged by that". Inflation will still rise a little higher to around 3.2%, he adds, from 2.8% in May. (edward.frankl@wsj.com)
1139 ET - Analysts with TD Cowen publish new price targets for both Strategy Inc. and bitcoin, maintaining a view that both will rebound by the end of the year, but cutting the outlook for how high they bounce. The firm says it now forecasts bitcoin to jump to around $100,000 by the end of 2026, down from a previous target of $140,000 by the end of the year but still up 72% from where bitcoin is trading as of today. Meanwhile, for Strategy, TD Cowen projects a price target of $260, down 35% from its previous forecast, although still up more than 200% from where it's trading now. Strategy is down 7.7% to $85.53 today, while bitcoin falls 3.3% to $58,223. (kirk.maltais@wsj.com)
1130 ET - Cleveland Fed President Beth Hammack says if higher inflation trends continue, the Fed may need to raise interest rates to restore inflation to target, citing robust consumer spending and short-term inflationary pressures from the AI data center buildup. Outside of higher energy prices, Hammack says during a CNBC interview, "When I look at that core inflation, that's been very elevated." Additionally, Hammack adds that she wants to see if consumer spending continues to hold up. "If it does, then that says to me that policy may not be restrictive enough to help us bring inflation back down," she says.(jessica.coacci@wsj.com)