(Bloomberg) — US equity futures and European stocks made small advances as traders looked forward to more economic data that could reinforce the case for Federal Reserve interest-rate cuts.
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Contracts for the S&P 500 pointed to a modestly positive open on Wall Street after the benchmark extended its winning streak to a fifth day Wednesday, buoyed by a benign consumer price index print. Cisco Systems Inc. rose as much as 7.4% in premarket after the computer networking equipment maker’s results beat expectations.
Bavarian Nordic A/S, one of few companies with an approved mpox vaccine, jumped 17% in Copenhagen after the World Health Organization declared a fast-spreading outbreak of the disease a global public health emergency. Europe’s Stoxx 600 Index rose 0.2%.
“The latest US inflation data supports our view of a gradual cooling of the US economy,” said Mark Haefele, chief investment officer at UBS Global Wealth Management. “This underlines our view that the Fed will start easing policy at its September meeting. That provides a positive backdrop for risk assets. It would also erode returns on cash, underlining our view that investors should brace for lower rates.”
There’s no let-up for traders tracking a busy week of updates on the world’s biggest economy. Thursday brings readings on initial jobless claims and retail sales, while Walmart Inc.’s earnings should provide insights into the health of the American consumer.
Figures out Wednesday showed that US year-on-year core consumer prices in July rose at the slowest pace since 2021. Traders are fully pricing in one 25 basis-point cut by the Fed next month and 100 basis points of reductions through year-end.
Treasuries were steady, as was a gauge of dollar strength.
In the UK, the economy maintained a steady pace of recovery from last year’s recession, with gross domestic product rising 0.6% in the second quarter after an 0.7% gain in the first three months of the year. The figures are unlikely to shift the calculus of policymakers at the Bank of England, which had expected an even stronger expansion.
Norway’s central bank held borrowing costs steady for an eighth month and shed little light on when easing might begin, given risks to the inflation outlook from a weaker krone. The currency gained after the announcement.
In Asia, Japan’s Topix index and China’s CSI 300 benchmark rose in a broadly positive reaction to data points in the two countries. Japan’s economy grew faster in the second quarter than analysts forecast. China, meanwhile, saw signs of stabilization that included slowing declines in home prices and better-than-expected retail sales.
In commodities, oil clawed back some gains after falling for a second session on Wednesday. Gold edged higher after two daily declines to trade above $2,450 per ounce.
Key events this week:
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US initial jobless claims, retail sales, industrial production, Thursday
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Fed’s Alberto Musalem and Patrick Harker speak, Thursday
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US housing starts, University of Michigan consumer sentiment, Friday
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Fed’s Austan Goolsbee speaks, Friday
Some of the main moves in markets:
Stocks
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S&P 500 futures rose 0.2% as of 6:04 a.m. New York time
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Nasdaq 100 futures rose 0.3%
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Futures on the Dow Jones Industrial Average rose 0.2%
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The Stoxx Europe 600 rose 0.2%
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The MSCI World Index was little changed
Currencies
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The Bloomberg Dollar Spot Index was little changed
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The euro was little changed at $1.1013
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The British pound rose 0.2% to $1.2856
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The Japanese yen was little changed at 147.37 per dollar
Cryptocurrencies
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Bitcoin fell 1.2% to $58,439.12
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Ether fell 2% to $2,623.07
Bonds
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The yield on 10-year Treasuries was little changed at 3.84%
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Germany’s 10-year yield advanced one basis point to 2.19%
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Britain’s 10-year yield advanced three basis points to 3.86%
Commodities
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West Texas Intermediate crude rose 0.7% to $77.50 a barrel
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Spot gold rose 0.4% to $2,458.34 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Richard Henderson and Sagarika Jaisinghani.
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