U.S. PPI ahead, China trade data disappoints - what's moving markets

investing.com:

Investing.com -- Investors await the publication of fresh inflation data out of the U.S. after stocks were boosted in the previous session by weaker-than-expected consumer price growth in June. Elsewhere, China's trade data for June disappoints estimates and Beijing announces new rules governing the use of generative artificial intelligence.

1. U.S. futures climb after key inflation reading

U.S. stock futures pointed higher on Thursday, adding on to sharp gains in the prior session, as investors eyed the release of another major inflation reading.

By 05:37 ET (09:37 GMT), the Dow futures contract rose by 90 points or 0.26%, S&P 500 futures added 17 points or 0.37%, and Nasdaq 100 futures jumped by 103 points or 0.67%.

The main indices surged to their highest level in more than a year on Wednesday after the closely-watched consumer price index for June slowed by more than expected, suggesting that the Federal Reserve may soon back away from its recently aggressive steak of policy tightening.

The Fed's path ahead may become clearer later today when the producer price index, another key inflation gauge, is published at 08:30 ET. Economists project that the measure grew by 0.4% annually and 0.2% monthly.

2. Chinese trade slips

Chinese exports dropped at their quickest rate in over three years in June, while imports were also weaker than expected, in a fresh sign of the pressures facing the world's second-largest economy.

Exports dipped by 12.4% annually in dollar terms, outpacing forecasts for a decline of 9.5%, according to customs data. Imports also contracted by 6.8%, a faster decrease than estimates for a fall of 4.0%.

Exports and imports sank by 7.5% and 4.5%, respectively, in May.

The trade figures have cast doubt