While the winds have subsided, rainfall from tropical storm Harvey is expected to reach as much as 50 inches over the upper Texas coast. The flooding has lead to widespread travel disruption as ports, airports and railways are all closed. The U.S. has also lost 10 percent of its fuel-making capacity as refineries in the region are shut. Gasoline futures rose more than 7 percent on the New York Mercantile Exchange on supply concerns, while a barrel of West Texas Intermediate oil for October delivery slipped to $47.40 and its discount to the international benchmark Brent widening to the biggest in two years.
The third round of Brexit negotiations starts later today, with Theresa May’s government coming under pressure at home as the opposition Labour Party looks to ease its stance on a divorce deal by calling for the U.K. to remain in the single market for an extended period. The shape of any transitional deal is one of the many things that still needs to be ironed out in talks with the EU. For markets, the biggest mover on Brexit continues to be the pound, with some analysts now questioning whether the negativity towards the currency is overdone.
After months of speculation following the ousting of co-founder Travis Kalanick, Uber Technologies Inc. has decided to appoint Expedia Inc.’s Dara Khosrowshahi as chief executive officer, according to two people familiar with the matter. There are numerous challenges facing Khosrowshahi in his new role, as the company tries to navigate its way toward a still-unscheduled initial public offering, with corporate losses and competitor lawsuits likely to keep the new CEO very busy.
Overnight, the MSCI Asia Pacific Index added 0.1 percent, while Japan’s Topix index closed 0.2 percent higher as stocks were boosted following Jackson Hole. In Europe, the Stoxx 600 Index was 0.4 percent lower as of 5:45 a.m. Eastern Time, with U.K. markets closed for a holiday, while S&P 500 futures were losing some ground.
It’s going to be a big week for economic data. It starts today with U.S. wholesale inventories for July scheduled for 8:30 a.m. and Dallas Fed Manufacturing at 10:30 a.m. In the coming days, we will also get revised GDP, Core PCE inflation, personal income and spending, and manufacturing numbers. The big one will come on Friday in the form of the August Non-Farm Payrolls report.