US inflation data and Cisco Systems’ fiscal fourth-quarter results are the main market events this week, with both likely to influence expectations around interest rates, technology valuations and corporate margins.
US consumer price inflation is due on Wednesday 12 August. Prices are expected to rise 0.2% in July after falling 0.4% in June, while the annual inflation rate is forecast to ease to 3.4% from 3.5%.
Core inflation is also expected to rise 0.2% month on month after remaining unchanged in June. The annual core rate is forecast to fall slightly to 2.5% from 2.6%.
US equity valuations remain sensitive to changes in the interest-rate outlook. A higher-than-expected inflation reading could weaken expectations for easier Federal Reserve policy and put pressure on growth-sensitive stocks.
The Nasdaq 100 is approaching resistance around 29,900. A sustained move above that level could bring previous record highs back into focus. On the downside, the early August gap around 28,200 is a key area, followed by the late July level near 27,000.
Germany will also publish final July inflation data on Wednesday. Preliminary figures showed consumer prices rising 0.8% month on month and 2.8% year on year, both above expectations. The final readings are expected to confirm those numbers.
Any revision higher would strengthen the case for continued caution from the European Central Bank. That could affect European equities, bonds and the euro.
EUR/USD has strengthened recently but is moving into an important technical range. Support sits near $1.15, while resistance around $1.165 could determine whether the recovery continues.
Cisco Systems will report fiscal fourth-quarter 2026 results on Wednesday. Earnings are expected to rise 18.2% to $1.17 per share, while revenue is forecast to increase 14.7% to $16.8 billion. The main issue is margin pressure. Gross margin is expected to fall to 66.0% from 68.4% a year earlier. That means the market will be looking closely at whether higher revenue and earnings are being achieved at the expense of profitability.
Expectations for the first quarter of fiscal 2027 point to earnings of $1.16 per share, up 15.8%, and revenue of $16.8 billion, up 12.9%. Gross margin is forecast at 66.1%, compared with 68.1% a year earlier. That puts the focus firmly on execution. Strong top-line growth would support Cisco’s positioning, but weaker margins could limit the impact if costs are rising faster than expected.
Options pricing points to an expected post-results move of about 7.3%. Potential support sits near $110, while resistance is around $130. With the shares at an all-time high, the results need to support already elevated expectations. A break below $110 could shift attention towards $100.
CMC Markets plc (LON:CMCX) is a UK-based financial services company that offers online trading in shares, spread betting, contracts for difference and foreign exchange across world markets.
