Following Three-Day Rally, Stocks Drift & SpaceX Soars – Europe Market Wrap
Global equities were little changed after a strong three-day rally, with investors turning their attention to this week’s central bank decisions. S&P 500 futures traded flat after the benchmark gained around 2% since Thursday, while European and Asian stocks posted modest advances. Treasuries edged higher and the Dollar was little changed.
Attention is focused on the Fed’s policy decision on Wednesday, the first meeting under Warsh. While rates are widely expected to remain unchanged, markets will closely watch the post-meeting press conference and any signals on inflation and the policy outlook.
In commodities, Brent crude fell 2.6% to around $81 per barrel, extending its recent decline as major banks lowered their oil price forecasts. Goldman Sachs now expects Persian Gulf exports to return to pre-war levels by the end of July, earlier than previously anticipated, while Morgan Stanley also reduced its outlook.
The decline in oil prices has largely erased the conflict-driven gains seen earlier this year, easing inflation pressures and potentially providing policymakers with greater flexibility as they assess the path for interest rates. Meanwhile, SpaceX rose 11% in early trading and remains on track for a gain of more than 50% since its public listing.
The BoE and SNB are also expected to leave policy unchanged this week, keeping the focus on policymakers’ assessment of the inflation outlook. Their decisions follow last week’s ECB rate hike, the first increase in almost three years.
