Stocks gain as markets await raft of US and global data
European stocks gained for a second day as traders awaited a raft of economic figures over the next few days for clues on the outlook for global central bank policies.
Miners and real estate led the advance in the Stoxx Europe 600 index after China pledged further measures to support its economy. NN Group NV jumped more than 10% after the financial-services company reported results that beat analysts’ expectations. Futures on the S&P 500 and Nasdaq 100 fluctuated, suggesting US stocks will struggle to build on Monday’s solid gains. Treasury yields dipped, while a gauge of the dollar was steady.
Despite this week’s gains, global stocks are on track for their worst month in almost a year as policy makers remain determined to stifle inflation. Economic reports are assuming even more importance than usual after Federal Reserve Chair Jerome Powell reiterated at Jackson Hole last week that the central bank is ready to raise rates further if the data suggests that is appropriate.
“August has been a challenging month for markets, with investor sentiment cautiously picking up again,” said Victoria Scholar, head of investment at Interactive Investor. “Focus will be on key economic data from the US this week, with hopes that this will fuel expectations that the economy stateside is heading for a soft landing.”
Traders will be monitoring US consumer confidence data later Tuesday. Other reports this week include US employment growth, the core PCE deflator and August’s payrolls and wages data. Euro-area inflation readings will be in focus this week as well.
Meanwhile, the UK’s stock benchmark outperformed after the slowest increase in grocery bills in almost a year drove down inflation in shops in August, relieving some of the
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