US Futures Signal Steady Open With Focus on Data – Europe Market Wrap

Following several days of volatility, US equities were expected to open steadily as concerns about the strength of the country’s economy and the timing of any interest rate reduction by the Federal Reserve remain.

S&P 500 futures saw minimal movement as premarket trading saw gains for Tesla and Nvidia. Europe’s Stoxx 600 index fell 0.2%, with luxury firms and ASML, a tech heavyweight, among the worst-performing stocks. Following the lowest level of iron ore since 2022, London-listed miners BHP and Rio Tinto saw a decline.

After the Fed’s Beige Book survey revealed flat or declining economic activity and a US job openings data on Wednesday fell short of expectations, swap traders increased their bets on the rate cuts’ pace. This year, rates are expected to ease by at least 100 basis points, with one large decrease of 50 basis points included in the price.

Two-year Treasury yields increased by one basis point after plunging earlier on Wednesday due to data indicating a slowdown in the US labour market. The value of the dollar remained unchanged.