US core durable goods orders and oil inventories released today

• China sees more selling despite PBOC rate cuts;

• PBOC announces 140 billion Yuan SLO, European reaction muted;

• US core durable goods orders and oil inventories released today;

• Fed’s Dudley to speak as attention turns to Jackson Hole.

US indices are expected to open around one and a half percent higher on Wednesday, as we head into what is likely to be another volatile trading session.

We're still seeing some big market swings today after rate cuts from the People’s Bank of China proved not enough to stop the panic selling in Chinese stocks. Losses were much lower though which suggests they did at least ease the selling pressure a little. The rate cut from the central bank was clearly not enough to put investors’ concerns at ease.

Whether this morning’s announcement of a 140 billion Yuan liquidity injection from the PBOC in the form of short-term liquidity operations (SLOs) will do the job is yet to be seen but the response in Europe so far has been muted. Clearly there is still a lot of unease in the markets following such a volatile start to the week. The 500 point sell-off in the Dow in the final hour of trading yesterday emphasised just how anxious investors still are.

Focus today will be on US data with core durable goods orders due out just before the open. This is regarded as a great barometer of confidence in the US economy as these kind of investments are only made if the long-term outlook is positive. These numbers can be quite volatile from month to month so a single decline or significant increase can’t be read into too much, although given the fragile nature of the market at the moment, it would probably get a response. A poor number today would only add to the argument for no rate hike this year, despite three positive months prior to this.

Crude oil inventories will also be released today and we’re expecting to see another build of 2.167 million barrels. Another rise in inventories could weigh further on oil prices, with WTI and Brent already trading near six and a half year lows. It is likely that the supply glut will start to ease off soon and US production slows but until we see evidence of this, downward pressure is likely to remain on prices.

Well also get comments from William Dudley, a voting member of the FOMC, which will bring Jackson Hole in focus. With everything that's happened in China this week, investors will be looking for reassurances from policy makers that rates won't be hiked in September which would only add to the negativity in the markets. The Fed has appeared determined to hike rates this year though and in the coming days we’ll learn whether recent events has changed that at all.

The S&P is expected to open 32 points higher, the Dow 262 points higher and the Nasdaq 60 points higher.