US Futures Steady Before CPI as UBS Boosts Europe – Europe Market Wrap

US market futures remained in tight ranges ahead of an American consumer price data, which could influence whether the Federal Reserve will begin decreasing interest rates next month.

Europe’s Stoxx 600 Index was 0.2% higher, boosted by UBS, which increased after the bank’s second-quarter profit above expectations. Miners fell after iron ore prices fell to their lowest level since May 2023, owing to concerns over Chinese demand.

The easing of pricing pressures in the United States has boosted confidence that officials may begin to reduce borrowing costs and focused on boosting the labour market. Forecasters predict a 0.2% gain in both the consumer price index and the core gauge excluding food and energy, the latter representing the weakest three-month increase since early 2021.

The pound sank versus the dollar, but UK government bonds rose, when British inflation statistics came in below expectations. Consumer prices increased 2.2% in July, compared to economists’ predictions of 2.3%. For the first time since August 5, traders completely priced another half-point in Bank of England rate reduction by the end of the year.