US Futures Drop as OECD Lowers Forecast for Global Growth – Europe Market Wrap

US stock futures dipped as the OECD warned about global economic growth, heightening concerns about the impact of the Trump administration’s trade conflict.

S&P 500 contracts fell 0.4%, as the US benchmark is expected to continue its daily swings between gains and losses. Treasuries rose after a Japanese offering of 10-year paper met strong demand. The Dollar rose 0.2%.

The Paris-based OECD cut its global growth predictions for the second time this year, citing a combination of trade obstacles and uncertainty as a drag on confidence. The alarm comes two months into President Trump’s drive to change global trade and reach new agreements, with scant signs of progress in discussions with key partners.

In Europe, inflation dropped faster than predicted, falling below the ECB’s 2% objective and bolstering the case for additional interest rate cuts. The Stoxx 600 pared losses of up to 0.5%, while the Euro lost 0.2% against the Dollar.

Money markets are almost assured of a 25 bps decrease when the ECB makes its policy decision on Thursday, with at least one more reduction likely later in the year.