Futures on the S&P 500 Drop Ahead of Inflation Data – Europe Market Wrap

US stock futures fell, while gold set a new high, as investors focused on the Fed’s favoured inflation indicator and remained concerned about the long-term economic impact of the trade war.

According to experts, the US core personal consumption expenditures price index is predicted to gain 0.3% in February, unchanged from the previous month. With Trump threatening to impose so-called reciprocal tariffs next week, money managers say they’re going neutral, backing off, or de-risking their portfolios.

Meanwhile in Europe, the Stoxx 600 index fell 0.5% on Friday. Banks are the major winner this quarter, up 26%, as investors expect robust profitability, share buybacks, and M&A to boost gains.

The spectre of tariffs has also rattled commodity markets this week. Copper prices in London fell for a third day, dropping below $10,000 per tonne. The metal is set for a weekly decrease after reports that the US government intends to impose tariffs on copper imports in weeks rather than months, as had been generally expected.