Traders Trimming BoE Bets after Stronger UK Retail Sales – Europe Market Wrap

Stocks rose broadly on Friday, with positive business news offsetting disappointing rate-cut hopes.

Contracts on the tech-heavy Nasdaq 100 led increases in US equities futures.

Data on US producer prices will be closely watched today, following a hot consumer price index earlier this week that roiled financial markets, with traders adjusting their bets on Fed rate cuts in 2024.

The S&P 500 rose to its latest all-time high on Thursday, erasing all of this week’s losses, as a decline in US retail sales eased investor concerns over overheated consumer spending.

Treasury yields rose after Feds Bostic said it is not yet clear that inflation is on track to reach the central bank’s 2% target. Bostic, a voting member of the Fed’s policy-setting committee, said there is no rush to cut interest rates because the US labor market and economy are still strong.

Stronger UK Retail Sales led to a stronger pound.

Traders trim BoE bets after retail data, seeing 71bps of cuts in 2024.