European and US equity futures advanced on Thursday after the Federal Reserve signaled it’s close to cutting rates in September.
Oil climbed for a second day on Middle East tensions. Contracts for the Euro Stoxx 50 rose 0.3%. US stock-index futures climbed 0.6%, adding to gains on Wall Street.
Investors are now watching Bank of England’s interest rate decision, the third major central bank meeting in two days.
The monetary authority is expected to cut rates by 25 basis points, according to consensus forecasts compiled by Bloomberg, which would be the first reduction since the start of the pandemic.
In Asia, Japanese stocks tumbled by the most since 2020, with the yen rallying as traders braced for further rate hikes by the Bank of Japan.
The diverging fortunes reflected traders’ positioning for the narrowing of US-Japan rates differentials after the two central bank decisions on Wednesday.
After raising rates, BOJ Governor Kazuo Ueda said more increases will come if its price forecasts are met.
Japan’s Topix index slid almost 4% before paring, as the yen touched 148.51 against the dollar, its strongest level since March. The currency has gained almost 8% in the past month.
