US & European Stock Futures Rise Before PCE Data- Europe Market Wrap
Stocks edged higher at the start of a week in which investors will hunt for hints on next year’s interest-rate path as they look beyond an almost guaranteed decrease at the Fed’s final meeting in 2025.
S&P 500 futures increased by less than 0.1% as the benchmark finished within touching distance of an all-time high. Netflix rose 1.5% in premarket trading after Trump highlighted potential antitrust concerns about the company’s planned acquisition of Warner Bros.
US markets have rallied in recent weeks, approaching an October high, after several Fed members indicated that they plan to decrease rates on Wednesday. Nonetheless, enthusiasm has been tempered by uncertainty over the rate of relaxing in 2026 and concerns about the long-term viability of an AI-driven surge.
Europe led global bond market falls after the ECB’s Schnabel became the first senior official to say with certainty that European interest rates have reached a floor. US Treasuries extended losses, with the 10-year yield climbing 2 bps to 4.15%.
For stocks, interviews with 39 fund managers from the US, Asia, and Europe revealed that the vast majority of allocators were still planning for a risk-on environment through next year. The bet is that strong global growth, further advances in artificial intelligence, accommodating policy, and fiscal stimulus will result in outsized gains.
