US Stock Futures Muted as Economic Data Awaits

US stock futures were broadly muted on Friday as investors anticipated a variety of economic data, particularly consumer spending figures and the Federal Reserve’s inflation gauge.

By 06:31 ET (10:31 GMT), the Dow futures contract was mostly unchanged, S&P 500 futures had lost 5 points (0.1%), and Nasdaq 100 futures had slipped 43 points (0.2%).

The S&P 500 achieved its third record close this week on Thursday, gaining 23 points (0.4%). This rise was supported by a decline in weekly jobless claims and confirmation that the US GDP grew by 3% in Q2.

These figures enhanced optimism regarding the robustness of the US economy and labor market as the Fed prepares for a policy easing cycle following a significant interest rate cut last week.

Consumer Spending and PCE Data Expected

Investors are closely monitoring personal spending and inflation data, which could indicate the US economy’s health as the Fed anticipates further rate cuts later this year.

Personal spending is projected to have increased by 0.3% in August, down from 0.5% the previous month. Economists predict the PCE price index, the Fed’s inflation tracker, to rise by 0.2% month-on-month in August, maintaining July’s rate, with the year-on-year figure seen declining from 2.5% to 2.3%.

When excluding volatile items like food and fuel, the PCE price index is expected to hold steady at 0.2% month-on-month and slightly increase to 2.7% year-on-year from 2.6%.

European Markets Reach Record High

European stock markets surged to an all-time high in mid-morning trading, driven by a rally in Asia led by China. Reports of possible new stimulus measures from China supported notable gains.

Luxury stocks in Europe benefitted, especially high-end brands deriving significant sales from China, with companies like LVMH, Kering, Hermes, Hugo Boss, and Burberry seeing price increases. The automobile sector also experienced gains.

Oil Prices Experience Fluctuations

Oil prices increased on Friday as traders evaluated China’s stimulus and the potential rise in output from Libya and OPEC+. By 06:47 ET, Brent crude futures rose by 0.3% to $71.30 per barrel, and US West Texas Intermediate crude futures increased by 0.4% to $67.94 per barrel.

In Libya, rival factions resolved a dispute over the central bank, potentially allowing over 500,000 barrels per day to return to market. OPEC+ is also considering reversing 180,000 bpd of ongoing output cuts in December.

Investors are balancing the outlook for increased supply against significant stimulus from China earlier this week. Analysts remain uncertain whether these measures will enhance activity in the world’s leading oil importer.