Live Markets: Europe before the bell: Stocks set for gain as Fed rate hike bets recede
LIVE MARKETS-Europe before the bell: Stocks set for gain as Fed rate hike bets recede Adds new blog entry
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EUROPE BEFORE THE BELL: STOCKS SET FOR GAIN AS FED RATE HIKE BETS RECEDE
European equity futures are signalling a slightly positive open as markets continue to trim their expectations for a rate hike at the Fed September's policy meeting.
Investors are now pricing in about a 25% chance of a quarter-point rate rise next month, after recent data suggested a stuttering labour market and signs of easing inflationary pressures. Before the recent payrolls report, investors had priced in about a 50-50 chance of a hike.
The diminishing risk of a near-term rate hike is giving global equities a boost.
Euro STOXX 50 futures STXEc1 are up about 0.2% on Monday after the index gained for a fourth straight week last week. DAX FDXc1, CAC FCEc1 and FTSE futures FFIc1 are all up a touch too.
Markets are still watching the Middle East although energy markets are seeing a muted start to the week, with Brent LCOc1 and WTI CLc1 both slightly lower.
In corporate news, eyes could be on Belgium's argenx ARGX.BR after the company reported positive topline results in a phase three trial of its drug efgartigimod.
(Samuel Indyk)
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