US Futures Mark Time in Inflation-Day Waiting Games – Europe Market Wrap

On Wednesday, market movements were muted due to an anxious wait for US inflation data, which may offer hints about the prospects for interest rates.

US market futures were barely changed ahead of data expected to indicate some easing in pricing pressures after higher readings earlier this year. Treasuries and the currency were likewise stable.

Economists expect consumer prices to rise 0.3% in March, both overall and excluding food and energy expenses. While this would be a decrease from the previous two months, it may not be enough for Federal Reserve officials who are aiming for even lower numbers.

According to Wall Street traders, a surprise inflation estimate may cause equities to swing 2% in either direction. The trading desks of JPMorgan and Goldman Sachs expect equities to decline about 2% if the consumer price index rises by 0.4% in March. Both institutions, however, believe any market downturn will be just brief.