- German DAX futures +0.2%
- French CAC 40 futures +0.2%
- UK FTSE futures +0.3%
This follows from the modest declines yesterday, with Wall Street also reflecting a more mixed picture. Tech shares were the ones leading the charge yesterday with the Nasdaq closing 0.2% higher but the Dow closed 0.6% lower instead. There's still a lot of back and forth with market players continuing to push and pull on the whole AI narrative. So, that's keeping risk sentiment on edge for the most part.
But for today, the market mood seems to be steadier with US futures also seen marginally higher. S&P 500 futures are currently up 0.1% as we look to the session ahead.
In terms of key risk events on the economic calendar, we already got the big one out of the way. That being the UK CPI report for November here. The inflation numbers were softer than anticipated and that will help the BOE stick the landing for a rate cut this week. It may still be a bit premature to sell the story of a stronger disinflation trend though, especially with services inflation keeping elevated.
As such, I wouldn't expect market players to get too carried away in trying to price in that much quicker rate cuts by the BOE. So, that could limit the declines in the pound currency for the day. The GBP/USD side of the equation may be a bit trickier, as the dollar is seen keeping firmer across the board as we get into European morning trade.
