European stock futures edged higher as traders positioned ahead of this week’s US inflation data and Federal Reserve monetary-policy decision.
Contracts on the Euro Stoxx 50 Index climbed 0.2% even as most Asian shares declined. Treasuries crept higher in Asia, while Bloomberg’s gauge of the dollar advanced for a fourth day.
European shares tumbled Monday after French President Emmanuel Macron called a legislative vote in the wake of a crushing defeat in European Parliament elections.
Investors will be on the watch for Tuesday’s UK employment data that may impact the Bank of England’s policy decision next week.
Chinese shares led losses in Asia on concern over the weak property sector and uncertain growth outlook, with benchmarks in mainland China and Hong Kong both headed for their lowest closing levels since April.
Shares linked to electric vehicle makers slumped before the European Commission’s decision of provisional duties expected this week, while tourism-related firms dropped amid disappointing travel demand during the recent Dragon Boat Festival holiday.
“The Hang Seng Index remains weak, with market participants wanting to see more evidence of a recovery trend ahead, but incoming data has been more mixed than assuring,” Jun Rong Yeap, a market strategist at IG Asia Pte, wrote in a client note. “Eyes will be on China’s inflation data this week, where positive consumer-price growth may be on watch to reflect some stabilisation in domestic demand.”
