📆 Tuesday, May 28
► European shares showed mixed performance today, mirroring the slight gains seen in Asian markets. The European Stoxx 600 experienced minimal change (+ 0.1%). Investors remain concerned about inflation ahead of the ECB's CPI expectations release and in particular the US PCE data and the implications on rate cuts (for the ECB as well as the Fed).
► US stock futures showed slight increases as markets reopened following the holiday weekend. S&P 500 futures by 0.3%, and Nasdaq futures by 0.5%. The USD slipped for the third consecutive day, reflecting cautious but rather positive sentiment ahead of the release of the Federal Reserve’s preferred inflation gauge, the PCE data (on Friday). Treasury yields edged lower, with the 10-year yield holding falling 2 bp. The market is watching for comments from several Federal Reserve officials this week.
► When US traders return from the long weekend, they will also be watching for problems related to the switch to the “T+1” rule, in which US (as well as Canadian, Mexican) stocks settle on one day instead of two. There are concerns about potential teething problems, such as international investors struggling to raise dollars in time, global funds accessing their assets at different rates and everyone having less time to fix mistakes.
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