European stocks look set to track the advance in Asian peers on bets that the upcoming US consumer price report will allow the Federal Reserve to start easing in September.
The Euro Stoxx 50 futures climbed 0.3%, while US equity contracts traded little changed. The MSCI benchmark for Asian stocks climbed for a fourth session to recover further from last week’s rout.
The gains came after the US producer price index rose less than forecast, helping to fuel a 1.7% rally in the S&P 500.
The easing of price pressures in the US has bolstered confidence that officials can start lowering borrowing costs and refocus on supporting the labor market.
Forecasters expect a modest 0.2% increase in both the consumer price index and the core gauge excluding food and energy in data due Wednesday — which would mark the smallest three-month increase for the latter since early 2021.
“Global markets seem to be sounding the all-clear signal following the recession scare last week,” said Jun Rong Yeap, a strategist at IG Asia Pte.
