- US futures and European stocks rose on “Super Wednesday” as investors bet on good news from the Brexit summit, ECB meeting, US inflation data, and Fed’s March minutes.
- European leaders are set to grant a delay to Brexit of up to a year, giving British Prime Minister Theresa May more time to win parliamentary backing for her deal to leave the EU.
- The ECB policy meeting will be closely watched after the IMF cut its growth forecast to a decade low of 3.3% on Tuesday.
- The release of inflation data and the minutes from the Fed’s March meeting should provide insights into the central bank’s patient stance towards raising interest rates.
US futures and European stocks posted early gains on “Super Wednesday” as investors bet on good news from the Brexit summit, European Central Bank (ECB) meeting, US inflation data, and minutes from the Federal Reserve’s March meeting.
Europe’s leaders are expected to grant a delay to Brexit of up to a year, giving British Prime Minister Theresa May more time to win parliamentary support for her deal to leave the European Union.
Investors will be seeking reassurance from ECB President Mario Draghi after the International Monetary Fund (IMF) cut its growth forecast a third time in six months on Tuesday, from 3.5% to 3.3% – the lowest rate in a decade.
“Mario Draghi and his fellow policymakers are expected to sit on their hands this month, with little room to manoeuvre amid significant headwinds,” said Lukman Otunuga, research analyst at FXTM.
“While political tensions in France and Brexit uncertainties are beyond the central bank’s control, these factors have been highlighted by the IMF as putting downward pressure on growth, leaving the ECB to bide for time and watch how these risks manifest into the real economy.”
Also on Wednesday, the US Bureau of Labour Statistics will release its Consumer Price Index (CPI) reading for March.
The benchmark inflation measure, coupled with the minutes from the Fed’s last meeting, should provide insights into the central bank’s patient stance towards raising interest rates.
Here’s the market roundup as of 9.35 a.m. (5.35 a.m. ET):
- European markets opened in the green, with Germany’s DAX, France’s CAC 40 and the Euro Stoxx 50 are all up by about 0.4%.
- US stocks are set to open higher, with the futures underlying the Dow, S&P 500 and Nasdaq slightly up.
- Asian stocks were mixed with Japan’s Nikkei down 0.5% at the close, the China A50 up 0.6%, and the Shanghai Composite close to flat.
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