As Attention Shifts to Data, US Stock Futures Remain Stable – Europe Market Wrap
US market futures indicated a quiet start on Wall Street as traders awaited a packed schedule of Fed speakers and data releases for hints on the course of interest rates.
S&P 500 futures remained unchanged after the index hit its 54th closing high of the year on Monday. Treasuries and the Dollar fell, but the Euro recovered from some of the previous day’s losses, which were triggered in part by political uncertainty in France over the budget.
This year, the appetite for US equities has not faded. The S&P 500 has risen 27%, boosted by tech stocks and a widespread preference for US assets. The rise continued after Trump’s win raised expectations of tax cuts and deregulation.
In contrast, positioning on Euro Stoxx 50 futures is net bearish, and ETF outflows are accelerating. Investors are avoiding the region’s stocks due to slow economic and earnings growth and political turmoil in France and Germany.
In commodities, oil rose ahead of Thursday’s OPEC+ supply conference, with the market swayed by anticipation that China’s leadership may authorise additional stimulus at a crucial meeting next week.
China banned germanium and gallium exports to the US in principle, causing the Dollar to weaken. Previously, Swiss CPI YoY Actual came out as expected at 0.7%, strengthening the Franc.
