European and US equity futures rose on Friday, building on gains in Asian stocks as traders piled into risk assets amid growing optimism that the US economy will avoid a recession. The yen is set for its worst week since May.
Contracts on the Euro Stoxx 50 rose 0.3% and those on the S&P 500 added 0.2%, extending Wall Street’s overnight gains. Asia’s benchmark equity gauge is poised for its best weekly performance over a year, led by Japanese shares as a weak yen boosted exporters’ earnings.
The currency fell 1.3% versus the dollar Thursday, and was trading around the 149 level, easing fears of a massive carry trade unwind. A slew of US data this week, from inflation to jobless claims to retail sales, has reassured investors, supporting the view that the world’s biggest economy is heading for a “Goldilocks” scenario where inflation is contained without stalling growth.
Global stocks have erased mainly last week’s losses, when traders were worried the Federal Reserve won’t cut rates fast enough to prevent a recession.
