European stock futures gained in line with Asian shares as risk appetite across financial markets got a further boost from China’s latest stimulus measures and upbeat US momentum.
The yen swung to gains following Japanese election results. Euro Stoxx 50 contracts rose 0.2% alongside Chinese shares after officials pledged to increase fiscal support and stabilize the property sector to revive growth.
Futures for US indexes softened Friday after the S&P 500 climbed to its 42nd closing record of this year. The dollar rose, while 10-year US Treasury yields were flat. Stimulus in the world’s two largest economies has been a catalyst for markets this week, with China lowering the amount of cash banks must keep in reserve on Friday, ahead of a weeklong holiday.
The Federal Reserve’s preferred inflation indicator and a snapshot of consumer demand data, both of which are due later Friday, may provide additional cues on the path for US interest rates.
Today’s Asian market is “totally driven by China stimulus and support to overall global growth as a consequence,” said Matthew Haupt, a portfolio manager at Wilson Asset Management International. “We are still waiting for more stimulus to give this rally more duration.”
