Before the bell: Europe eyes firmer start, tech looks shaky
SPY•European shares were set for a roughly 0.3% firmer start ahead of U.S. inflation data, while Nasdaq futures were little changed. Markets priced a 21.6% chance of a Federal Reserve rate hike next month, and Brent crude traded above $106 a barrel.
1. Markets before the bell
European shares were set for a firmer start on Wednesday ahead of U.S. inflation data that could shape expectations for another Federal Reserve rate increase this year. Euro STOXX 50, DAX and FTSE futures rose around 0.3%, while Nasdaq futures were little changed.
2. Inflation and earnings ahead
September headline inflation was expected to accelerate to 3.6% as higher energy prices offset softer underlying pressures. Markets priced a 21.6% chance of a Fed rate hike next month. Investors were also watching earnings from BlackRock, Morgan Stanley and Bank of America after a weak start to the U.S. bank earnings season.
3. Stocks and deals
Shares in ASML were indicated around 1% lower, despite its sales forecast topping expectations, as gains in Samsung Electronics and SK Hynix faded. Brent crude added 0.5% to trade above $106 a barrel, while U.S. 10-year Treasury yields edged lower in Asian trading. Galderma agreed to buy ZO Skin Health for an enterprise value of $1.5 billion, and ISS urged Monte dei Paschi shareholders to reject its proposed acquisitions of Banco BPM and Banca Generali.
