Live Markets: Europe before the bell: sentiment helped by disinflation narrative
LIVE MARKETS-Europe before the bell: sentiment helped by disinflation narrative Adds new blog entry
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EUROPE BEFORE THE BELL: SENTIMENT HELPED BY DISINFLATION NARRATIVE
European stocks are heading for a positive open with risk sentiment still supported by benign U.S. inflation prints that look set to keep the Fed on hold at the next meeting in September.
Fading bets for a hike in September have buoyed markets, even as talks to end the war in the Middle East have stumbled and traffic through the Strait of Hormuz remains at a trickle.
Euro STOXX 50 futures STXEc1 are up 0.2%, with the index set to test its all-time high at the open.
Futures on the DAX FDXc1, CAC FCEc1 and FTSE FFIc1 are gaining 0.1% to 0.4%.
Investor expectations for tighter U.S. monetary policy lessened this week after both consumer and producer prices data pointed to a cooling inflationary picture.
The spanner in the works remains the Iran war, with talks between Washington and Tehran at an impasse and both sides stepping up their rhetoric in recent days. For now, markets remain sanguine about the prospect of prolonged energy supply disruptions.
Company newsflow is light with earnings season winding down, although one to watch is Aviva AV.L, whose first-half profit beat expectations.
(Samuel Indyk)
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