Equities Rest Near Record as Traders Await Impetus – Europe Market Wrap

After a week that saw the S&P 500 break new records and European shares come just short of that threshold, stocks and US equity futures stopped as investors anticipated new catalysts.

Futures for the S&P 500 and Nasdaq 100 increased marginally as US cash markets were closed for President’s Day. Wednesday’s earnings from heavyweight Nvidia could provide stocks a fresh boost as traders attempt to assess how strong the world economy is.

The STOXX Europe 600 was barely changed following the previous week’s 1.4% increase, which brought the gauge within four points of its January 2021 high. Following the fall in iron ore, basic resources companies led the slide, while the technology sector underperformed. Defensive industries, such as telecoms and health care, had advances.

Swaps are currently pricing approximately 90 basis points of Federal Reserve rate cuts in 2024, down from more than 150 BPS at the beginning of February. In Europe, wagers have been reduced from 150 to around 100 BPS.

Bundesbank: Germany likely in recession now on weak external demand, muted consumption and cautious investments.