Investors across the pond face a reality check later with US core inflation figures expected to show an increase – diminishing hopes the Federal Reserve will take a more lenient approach to raising rates.
It comes after markets rallied yesterday following better-than-expected GDP numbers in the US. However, economic growth combined with rising core inflation has led some to aptly describe it as growth, but for the wrong reasons. Futures for the S&P 500 and the Nasdaq 100 index imply drops of 0.3 per cent and 0.6 per cent respectively when they open later.
European stock markets were more sanguine with the FTSE 100 up 0.2 per cent and the Stoxx Europe 600 up 0.1 per cent. The Hang Seng added 0.5 per cent while Japan’s Nikkei 225 was up 0.1 per cent.