The only thing the stock market likes less than the prospect of a rate hike is the prospect of a rate hike in a softer economy. The Nasdaq posted its worst day in 11 months Wednesday following a downgrade of semiconductor maker AMD as the euro led and the kiwi lagged. The Asia-Pacific calendar is quiet. EURGBP Premium trade is open ahead of tomorrow's UK retail sales.
Atlanta Fed President Lockhart said it's quite likely that rates will rise in September or sooner. He said the FOMC would need to be “really disappointed” in the economic data to wait longer with something close to an economic shock the only way hikes could be derailed beyond year end.