US Futures Rise as Focus Turns to Inflation Data – Europe Market Wrap

As traders shifted their attention to inflation data that is expected later this week to determine the Federal Reserve’s interest-rate path, US equities futures climbed, erasing their earlier decline.

Contracts for the Nasdaq 100 and the S&P 500 Index increased by 0.3%. Monday saw a decline in both benchmarks as traders reduced their bets on the likelihood of interest rate reductions, which increased the yield on US bonds. Tuesday’s interest rates on Treasury borrowing remained unchanged at 4%.

In premarket trade, Honeywell climbed as the Wall Street Journal revealed the industrial conglomerate intends to spin off its advanced materials division, while Super Micro Computer jumped as shipment statistics indicated strong demand for its servers.

Conversely, investors hoping for further stimulus were disappointed by China’s most recent vow to boost the economy, and as a result, US-listed Chinese shares experienced a steep decline.