As US Rate-Cut Optimism Maintains Rally, Stocks Rise – Europe Market Wrap
US stock futures rose as increased prospects for interest rate decreases fuelled traders’ renewed optimism heading into the Thanksgiving holiday. UK gilts remained stable ahead of Wednesday’s budget.
The S&P 500 was poised to extend a three-day, 3.5% rise fuelled by broad sector gains. The US benchmark also received technical support, recovering its 50-day moving average. Alphabet gained 1.9% in premarket trade after hitting three straight all-time highs. Nvidia was on track to post its second consecutive daily loss.
Equities are regaining momentum after a sharp sell-off in early November due to concerns about inflated technology valuations. Sentiment has since risen as Fed’s dovish words reignited hopes for a December rate decrease.
The Pound fell 0.1% ahead of the budget, but the FTSE 250 was set for a third day of gains. The yield on 10-year gilts remained hardly changed, at 4.50%.
Wednesday’s data releases in the US include weekly initial unemployment claims and preliminary durable goods orders for September. Tuesday’s statistics on private payrolls and consumer sentiment bolstered predictions for a December drop by highlighting continuing labour market concerns.
