US Futures Rise with Markets awaiting PPI Data – Europe Market Wrap

Along with European stocks, US equity futures saw gains as traders prioritised corporate profits prospects over additional inflation data that could provide guidance on the Federal Reserve’s policy direction.

The S&P 500 and Nasdaq 100 contracts saw increases of roughly 0.3% and 0.4%, respectively. Premarket trading saw increases for Netflix and Meta, as experts noted that regulations aimed at TikTok may boost social media and streaming firms. Adobe exceeded its first-quarter earnings forecast. A prominent analyst’s pessimistic sales forecast caused Tesla to plummet.

Treasury yields were stable this week, resulting in an increase of about 12 BPS. There was not much of a movement in the dollar index.

This Wednesday’s US producer-price data, which follows this week’s sticky consumer reading, will be the last indication of inflation before the Fed’s policy meeting the following week. For the sixth consecutive meeting, officials are predicted to maintain current interest rates; the only unknown is when they will begin to reduce borrowing costs.

ECB’s Stournaras: We have to cut rates twice before summer break. [Euro weakened]