Stocks Pause Post Rally, and Look For Rate Cut Signals – Europe Market Wrap

European markets stalled near a record high following six weeks of gains, as investors sought confidence that central banks will decrease interest rates in the coming months.

The STOXX 600 index fell 0.2% across Europe, although the tech shares sub-index rose, mirroring Wall Street’s advances on Friday. US market futures were little changed after the S&P 500 and Nasdaq 100 closed last week at all-time highs. Treasuries fell, as oil prices remained around their highest level this year following OPEC+’s prolonged output restrictions.

The S&P 500 has now gained for 16 of the last 18 weeks, a streak not seen since 1971, according to Deutsche Bank analysts. That rally was fuelled last week by US statistics, which bolstered forecasts that the Federal Reserve would be able to decrease interest rates later this year. During the results season, corporations reported an average earnings rise of 8%.

Swiss CPI YoY Actual 1.2% (forecast 1.1%, Previous 1.3%) [Swiss franc strengthened]