Stock Futures Hold Gains Ahead of US Price Data – Europe Market Wrap

US shares were poised to maintain gains from the previous session’s tech-led bounce, with traders betting that Wednesday’s critical US inflation report would not damage the argument for Federal Reserve interest rate reduction.

Futures contracts for the S&P 500 and Nasdaq 100 were barely changed, while the MSCI All Country World Index continued its longest streak of gains since January. The S&P 500 climbed Tuesday ahead of US consumer price index data, despite Jerome Powell’s warnings that interest rates would remain high for a longer period of time and a mixed report on producer inflation.

Treasury rates fell, and the dollar index weakened ahead of the inflation data, which is expected to indicate a small reduction in price hikes. Core CPI, which excludes volatile food and energy expenses, is expected to decrease to 0.3% month on month from 0.4%.