US Stocks and Bonds Stabilise Ahead of Fed Decision- Europe Market Wrap
US stocks and Treasuries steadied after several days of selling as traders awaited the Fed’s rate decision and updated projections. S&P 500 futures rose 0.2%, while Nasdaq 100 futures gained 0.4%.
Treasuries advanced modestly across the curve, with the US 10-year yield down 1 bps to 4.99%. Oil prices also eased, with Brent falling below $108 a barrel, while the Dollar and Bitcoin were little changed.
Markets are pricing more than a 90% chance of a 25 bp Fed hike, which would be the first increase since 2023, with another move fully priced by December. Persistent inflation, rising energy costs and resilient employment have strengthened expectations that policy may remain tighter for longer.
Brent pulled back after a US industry report pointed to rising stockpiles, following a supply-driven gain of more than 4% over the previous two sessions. The rally had pushed Brent’s relative strength index above 70, signalling the move may have become stretched.
Intel rose around 3% in US premarket trading after reports it is in talks with SK Hynix over potentially producing memory chips in the US for the first time. Software shares lagged.
