US Stock Futures Await Economic Data, Fed's Inflation Gauge; European Stocks Hit Record High
Investing.com -- US stock futures were broadly muted on Friday as investors awaited the release of economic data, including new consumer spending figures and the Federal Reserve's preferred gauge of inflation. The benchmark index posted its third record close this week, underpinned by positive economic figures.
The increase in weekly jobless claims dropped more than expected, while the final reading of US gross domestic product confirmed a 3% expansion in the second quarter. This boosted hopes for a strong economy and labor market as the Fed signals further policy easing.
Investors will be closely watching personal spending and inflation data for insights into the US economy as the Fed plans more rate reductions. Personal spending is expected to slow to 0.3% in August, while the PCE price index is projected to rise by 0.2% on a monthly basis.
European stock markets rallied to a record high, fueled by momentum from a China-led rally in Asia. Luxury stocks in Europe, reliant on Chinese sales, saw gains. Oil prices edged up as traders assessed China's stimulus measures and potential output increases from Libya and OPEC+.
In Libya, factions agreed to end disputes over oil production, potentially adding over 500,000 barrels per day back to markets. OPEC+ plans to reverse ongoing output cuts in December. Investors are balancing increased supply outlook with China's stimulus package's impact on the world's top oil importer.
Analysis:
- US stock futures are stable ahead of economic data and Fed's inflation gauge.
- Positive economic figures support hopes for a strong economy and labor market.
- Personal spending and inflation data will provide insights into the US economy.
- European stocks hit a record high, driven by a China-led rally in Asia.
- Oil prices edge up on assessments of China's stimulus measures and potential output increases from Libya and OPEC+.
- Investors are monitoring the balance between increased oil supply and China's stimulus impact.
