Stocks Rally as Confidence in Fed Wagers Grows – Europe Market Wrap

Stocks rose, with the S&P 500 poised to extend last week’s surge, as traders became more optimistic that the Federal Reserve will lower interest rates this year.

S&P 500 futures rose 0.3%, reflecting advances in European and Asian markets. Trading volumes were lower than typical due to the UK and Japanese markets being closed for the holidays. Apple fell in premarket trade after Berkshire Hathaway reduced its investment. German ten-year rates decreased, while the yen weakened. Oil rose when Saudi Arabia boosted rates for Asian clients.

With a light US economic calendar this week, the market’s direction might come from central bank officials, as well as policy summits in the United Kingdom, Australia, and Sweden. According to an interview with Spanish daily El Confidencial, European Central Bank Chief Economist Philip Lane said recent statistics have increased his confidence that inflation is returning to the 2% target, boosting the prospect of a first interest rate drop in June.