Daily Dose, EU, US

US Futures Remain Muted Before Fed Speak – Europe Market Wrap

US market futures were down, with investors hesitant to make major bets ahead of economic data and commentary from Federal speakers in the coming days, which could provide indications on the likelihood for interest-rate decreases.

Futures contracts hinted to modest gains on Wall Street after the S&P 500 fell for the first time in four days on Monday, retreating from its most recent record level. Europe’s STOXX 600 index was hovering near its all-time high. Treasuries climbed higher after falling on Monday amid significant corporate issuance and two note auctions. The dollar remained unchanged.

Readings on the US economy are in sharp focus this week, with the Fed’s preferred inflation indicator due on Thursday attracting the most attention. Markets have already lowered expectations for early and quick Fed easing in response to stronger-than-expected job and price growth, lowering betting on a first cut from March to June or July.

Meanwhile, Bitcoin soared, temporarily exceeding $57,000 for the first time since late 2021, aided by investor demand via exchange-traded funds and more purchases by MicroStrategy.

G20: Upside risks include faster-than-expected disinflation.