Market News

(Bloomberg) -- US equity futures gained as trade tensions eased and investors stuck to bets on Federal Reserve interest-rate cuts ahead of a key inflation reading later Friday.

Contracts on the S&P 500 and Nasdaq 100 advanced after a tech-led rally on Wall Street. Shares in Intel Corp rose in post-market trading Thursday in New York after an upbeat revenue forecast.

The Stoxx Europe 600 index erased gains amid mixed earnings and contrasting economic data from Germany and France, the region’s two biggest economies. While business activity in Germany surged, France’s composite purchasing managers’ index unexpectedly fell. The country’s CAC 40 stock index declined.

Among companies reporting earnings in Europe, French drugmaker Sanofi SA, UK lender NatWest Group Plc, Swiss cement producer Holcim AG and Swedish defense firm Saab AB gained after beats. Aluminum supplier Norsk Hydro ASA and Dutch lights manufacturer Signify NV dropped after missing analysts’ earnings estimates.

With money markets pricing in a Federal Reserve rate cut next week and Treasuries on track for their best monthly performance since February, investors will likely look past any evidence of stubborn inflation in Friday’s consumer price index report, which comes after a more-than-three-week data vacuum due to the US government shutdown. Treasury yields and a gauge of the dollar was steady.

“Whatever the print looks like, it won’t deter the FOMC from delivering a 25 basis-point cut next week, or at the December meeting, even if there will probably be some knee jerk volatility as the data crosses,” said Michael Brown, a senior research strategist at Pepperstone Group Ltd.

Brent crude oil held above to $65 a barrel after rallying more than 5% as US President Donald Trump imposed sanctions on Russian producers. Gold is set to snap a nine-week winning run, following a sharp correction as the market reassessed a rally that had pushed the metal into overbought territory. Bullion slipped below $4,100 an ounce on Friday, putting it on track for a weekly decline of more than 3%, the most since May.

Sentiment was helped by a White House announcement that President Trump will meet his Chinese counterpart Xi Jinping, a chance for cooler heads to prevail after a recent flare-up in trade tensions. The two leaders will talk next Thursday on the sidelines of the Asia-Pacific Economic Cooperation summit, their first face-to-face meeting since Trump returned to power.

“The confirmation of a Xi–Trump meeting gave markets a clear reason for a relief rally today,” said Hebe Chen, an analyst at Vantage Markets in Melbourne. “Not from hopes of warmer U.S.–China relations ahead, but from the perception that any progress is better than stalemate, and that a new deal before the truce deadline now appears more attainable.”

Other trade conflicts continue to simmer, however. Trump halted all trade negotiations with Canada, citing a Canadian advertisement against his signature tariffs plan featuring the voice of former President Ronald Reagan. Canadian bonds fell and the currency weakened.

Meanwhile, Chinese officials pledged to “greatly increase” the country’s strength and capacity for self-reliance in science and technology in the next five years, according to a communique released Thursday after a four-day conclave of the Communist Party’s Central Committee. Although the statement contained few surprises for investors, it confirmed Beijing’s commitment to bolster the tech sector.