U.S. equity-index futures rose along with stocks in Europe as investors awaited minutes from the Federal Reserve’s latest meeting for clues on policy makers’ thinking on interest rates and stimulus. Bonds extended gains.
The Stoxx Europe 600 Index climbed after the European Commission increased its growth forecast for the bloc. Technology shares led the charge following the Nasdaq 100’s rise to a record on Tuesday, and commodity sectors also outperformed. Didi Global Inc. extended losses in U.S. premarket trading after a Chinese crackdown on firms listing their shares abroad.
Ten-year Treasury yields dipped along with those on core European bonds. The dollar was steady against a basket of major currencies. Oil extended gains amid the OPEC+ crisis, which has stymied efforts to raise production and buffeted prices.
Markets are stabilizing after Tuesday’s risk-off move, sparked by concerns about the outlook for the global economy as new virus variants emerge. Investors are taking some heart from soft U.S. data that suggests the Fed will continue offering monetary support for now. But with global stocks near all-time highs and inflationary pressures in focus, they’ll pay close attention to the wording of the minutes from the central bank’s last meeting for clues on the policy path.
“Signs that the recovery is not too hot nor too cold imply that policy normalization could be very gradual,” Credit Agricole CIB strategists led by Jean-François Paren wrote in a note. “This supports our view that while the Fed will discuss tapering from the upcoming meetings, the actual tapering is unlikely to start before next year.”
Elsewhere, copper declined and gold advanced for a sixth day. Australian and New Zealand bonds rallied. Asian stocks fell, with Chinese tech firms in Hong Kong retreating after Beijing’s cybersecurity probe of ride-hailing giant Didi Global Inc.