US Futures Increase While Investors Await Data on Inflation – Europe Market Wrap

US equities futures rose as investors anticipated US price data to determine the Fed’s policy course.

Contracts on the S&P 500 and Nasdaq 100 predicted a strong open on Wall Street. Europe’s Stoxx 600 lost its early lead when an index of German investor expectations fell faster than economists predicted. Brent crude oil remained at the $82 level reached on Monday, as the US views an Iranian attack on Israel as increasingly possible.

The British pound rose and the FTSE 100 index underperformed Europe’s benchmark as statistics indicated that UK unemployment unexpectedly fell in the second quarter, hindering the BoE’s move to lower interest rates. US Treasuries and the Dollar were stable.

Following last week’s chaos, investors are focussing on Wednesday’s US consumer price index, which might help assess whether the Fed has enough flexibility to provide a soft landing for the economy. The recent surge in crude oil prices has also focused attention on producer-price data, which will be released later Tuesday as an indicator of pipeline inflationary threats.