📆 Wednesday, February 14
► European equity futures dip after the US inflation report exceeded expectations, sparking concerns over the Federal Reserve's rate cut timeline, European stock futures mirrored Wall Street's downturn, currently, however, the Stoxx 600 found some footing and trades even 0.2% higher. This development has led investors to reassess their positions in anticipation of a less accommodative Fed policy than previously hoped. The UK provided a silver lining with its inflation data, reporting lower than anticipated figures for January. Despite this, the initial optimism faded as the GBP lost its early gains post-release. This data had momentarily fueled hopes for an impending policy easing by the Bank of England.
► US futures stabilized following a significant sell-off on Wall Street triggered by the inflation data, US equity futures saw a modest recovery. However, investor sentiment remains cautious, with a close eye on future Fed actions in response to persistent inflationary pressures. Treasury yields, having surged in reaction to the inflation report, showed signs of stabilization. This adjustment comes as market participants recalibrate their expectations for the Fed's interest rate trajectory in light of the latest inflation data.
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