US Futures Edge Higher as Nvidia Extends Rebound – Europe Market Wrap

In the absence of important eurozone data on Wednesday, traders rely on policy signals. Investor expectations for the European Central Bank to ease monetary policy twice more this year are reasonable, according to Governing Council member Rehn, who stressed that authorities should not excessively hinder economic growth.

The 10-year Treasury yield increased slightly, while the dollar index climbed for the second day in a row. The US will offer $70 billion in five-year notes later Wednesday, following a strong auction of two-year Treasuries yesterday.

US market futures moved higher, indicating that Wall Street’s tech-driven surge, fuelled by Nvidia’s recovery from a $430 billion loss, is still on track.

Fed officials reportedly anticipated only 25 basis points of reductions by the end of this year and 125 basis points by the end of 2025, although market participants expect roughly 75 basis points by the first quarter of 2025.