Markets await Janet Yellen's speech

In what could be early signs of inflation creeping into the consumer price index, Japan's PPI posted a surprise increase in July. Official data from the Bank of Japan on Thursday showed that producer prices increased 0.40% in July, beating estimates of a 0.10% increase. July's PPI reading marks an increase in nearly 6 months after PPI remained stagnant at 0.20% growth. On a month over month basis, PPI was seen rising 0.40%. Driving prices at the factory gate higher were individual components with prices for advertising, communications and leasing while prices for transportation and postal activity fell during the same period.

US durable goods orders posted a strong comeback in July reversing the declines from the month before. Data from the commerce department showed on Thursday that US durable goods orders which includes long lasting factory goods increased 4.40% in July after falling 4.20% in June. July's durable goods orders beat estimates of a 3.70% increase that was forecast. Excluding transportation equipment, US durable goods orders rose 1.50% on the month after falling 0.30% in June. The data pointed to US manufacturers entering the second half of the year on a firm footing after weak second quarter growth. July's durable goods orders also posted the strong gains since October last year.