Before the bell: Europe edges up as oil and yields ease
SPY•European shares set for higher open
European shares were set for a higher start on Thursday as oil prices softened and long-dated Treasury yields remained below the 5% mark after the Federal Reserve raised interest rates by a quarter of a percentage point, as widely expected, in its first hike since 2023.
The 0.3% rise in pan-European Euro STOXX 50 futures .STOXX50E follows modest gains in Asia overnight and advances in U.S. futures, with investors betting the Fed may finally be gaining the upper hand in its fight against inflation.
Markets are pricing a more than 53% chance of another 25-basis-point Fed rate hike at the central bank's next meeting, according to the CME FedWatch Tool.
BoE decision, stocks, and sector moves
FTSE futures .FTSE also edged higher ahead of the Bank of England's policy decision later in the day. The BoE is widely expected to keep rates unchanged, although policymakers are once again expected to be divided in their vote.
Technology shares were broadly higher in early Frankfurt trading following recent volatility, with Nasdaq futures also advancing. Banks outperformed as well, although Raiffeisen RBIV.VI was called lower after Grizzly disclosed a short position.
The fall in crude prices on easing supply fears could weigh on energy shares, limiting broader market gains. Brent was last at $104.6 per barrel, down 1.2%.
Geopolitical uncertainty continued to weigh on companies, with German industrial services group Bilfinger GBFG.DE cutting its outlook, sending its shares sharply lower in premarket trade.
