Before US Producer Price Data, Stock Futures Remain Steady – Europe Market Wrap
US stock futures recovered from earlier severe losses as investors awaited wholesale inflation data, which is due later, to confirm hints that price increase is moderating.
The S&P 500 and Nasdaq 100 contracts declined less than 0.1% after rising on Wednesday, boosted by a lower-than-expected inflation reading. While software company Adobe suffered from poor earnings in premarket trade, Intel rose as much as 11% after appointing a new CEO.
European equities gained nearly 0.5%, maintaining their year-to-date lead over US peers. Gold was the other big mover, with prices approaching record highs as some institutions forecast additional rises for the shelter asset amid escalating global trade concerns.
Meanwhile, Treasury yields edged higher despite the lower inflation data, with investors focused on the impact increased tariffs could have on prices in the coming months. The Fed, which meets next week, has already indicated that it will take a wait-and-see strategy before dropping rates further.
Crude oil futures fell as the IEA warned that the intensifying trade conflict is putting downward pressure on global demand.
