US Stock Futures Pause Before PCE Data – Europe Market Wrap

At the end of a week that saw Wall Street and European indexes reach record highs due to confidence over central bank easing and stimulus from China, US futures outperformed tower. Following the outcome of the Japanese election, the yen surged in value.

After the underlying index reached its 42nd closing record of the year, S&P 500 contracts declined. With chipmaker Nvidia falling more than 1% in premarket trading, Nasdaq 100 futures were down 0.2%. The US Treasury yield on the 10-year note and the dollar barely moved.

After a significant change to statistics, traders will be watching the Federal Reserve’s preferred inflation measure later on Friday for hints about the direction of interest rates. This week’s market appetite for risk has been heightened by China’s daily stimulus announcements as well as growing wagers on additional interest rate cuts from the Fed and the European Central Bank.

Shigeru Ishiba became victorious in the race for the head of the country’s ruling party, and the yen strengthened against the dollar, rising 1%. Ishiba, a long-time party member who has held a number of important positions, including minister of defence, is said to be in favour of the Bank of Japan’s proposal to gradually raise interest rates.