European stocks and US equity futures gained ahead of keenly awaited US inflation data that will help determine when the Federal Reserve finally pivots to monetary easing.
The Stoxx Europe 600 rose 0.6%, headed by energy, basic resources and technology shares. UK stocks outperformed after data showed the jobs market is cooling. Futures on the S&P 500 and Nasdaq 100 rose 0.4% and 0.7% respectively. US Treasury yields were steady and a gauge of the dollar was flat.
The options market is more concerned about a big S&P 500 move after the inflation report than it is about the Fed’s interest rate decision next week, according to Citigroup Inc. Traders are hedging for moves of 0.9% in either direction – the biggest implied shift ahead of a consumer price index report since April 2023.
JPMorgan European Discovery Trust plc (LON:JEDT) is an investment trust company. The Investment Trust JEDT objective is to achieve capital growth from a portfolio of quoted smaller companies in Europe, excluding the United Kingdom.
