Global Stocks Advance as Rate-Cut Momentum Builds: Markets Wrap

　　US futures contracts strengthened, signaling fresh record highs when Wall Street reopens after a public holiday. Europe‘s Stoxx 600 index climbed 0.4%, while Zurich’s benchmark SMI index added 0.6% after the Swiss National Bank trimmed rates for the second time this year. France‘s Cac 40 also gained after a government bond auction — the first since last week’s shock snap election announcement — received solid investor demand.

　　Switzerlands rate cut “implies they feel confident that the inflation dynamic is manageable, and that bodes reasonably well for other central banks,” said Guy Miller, chief market strategist at Zurich Insurance Company Ltd. “It confirms that rate cuts are very much in play for the remainder of this year and that should support risk assets.”

　　The Swiss franc slid as much as 0.6% versus the euro, and tumbled 0.8% against the dollar after the rate cut. Haven US and German bonds slid, while French debt held steady after the government raised €10.5 billion ($11.3 billion) in a sale that was seen as a test of investor sentiment. The extra yield investors demand to hold French debt held just off seven-year highs.

　　Focus now turns to the Bank of England‘s policy meeting, which could signal the timing of a first UK rate cut. Many expect the BOE to move in August, with data on Wednesday showing inflation has slowed to the central bank’s 2% target. Others reckon, however, that signs of sticky services inflation could induce rate-setters to wait until later in the year.

　　Wall Street, meanwhile, appeared headed for fresh records. The S&P 500 hit its 31st record high of the year on Tuesday, powered by the ongoing AI frenzy and resilient economic growth that should continue to support corporate earnings — especially in the technology sector.

　　Contracts for the Nasdaq 100 rose 0.7% and those on the S&P 500 added 0.4%, while Nvidia Corp. — now the worlds most valuable company — rose as much as 4.1% in New York premarket trading, putting it on track to add another $130 billion to its market capitalization. Dell Technologies Inc. and Super Micro Computer Inc. also rallied after billionaire Elon Musk said in a post on X the companies will provide server racks for a supercomputer his artificial intelligence startup is building.

　　Tech led gains on European stock markets too, with chip device maker ASM International NV jumping as much as 5.8% after Morgan Stanley issued a bullish note on the stock.

　　Later in the day, traders will look out for US weekly jobless claims data which is expected to show a small decrease from the previous print. Several Federal Reserve speakers will also be on the wires on Thursday, including the Minneapolis Fed‘s Neel Kashkari and the Richmond Fed’s Thomas Barkin.

　　Key events this week:

• 　　Eurozone consumer confidence, Thursday

• 　　UK BOE rate decision, Thursday

• 　　US housing starts, initial jobless claims, Thursday

• 　　Eurozone S&P Global Manufacturing PMI, S&P Global Services PMI, Friday

• 　　US existing home sales, Conf. Board leading index, Friday

• 　　Feds Thomas Barkin speaks, Friday

　　Some of the main moves in markets:

　　Stocks

• 　　S&P 500 futures rose 0.4% as of 6:32 a.m. New York time

• 　　Nasdaq 100 futures rose 0.7%

• 　　Futures on the Dow Jones Industrial Average were little changed

• 　　The Stoxx Europe 600 rose 0.5%

• 　　The MSCI World Index was little changed

　　Currencies

• 　　The Bloomberg Dollar Spot Index rose 0.1%

• 　　The euro fell 0.1% to $1.0728

• 　　The British pound fell 0.1% to $1.2706

• 　　The Japanese yen fell 0.2% to 158.44 per dollar

　　Cryptocurrencies

• 　　Bitcoin rose 1.4% to $65,730.21

• 　　Ether rose 0.8% to $3,580.4

　　Bonds

• 　　The yield on 10-year Treasuries advanced three basis points to 4.25%

• 　　Germanys 10-year yield advanced three basis points to 2.44%

• 　　Britains 10-year yield advanced one basis point to 4.08%

　　Commodities

• 　　West Texas Intermediate crude was little changed

• 　　Spot gold rose 0.4% to $2,338.17 an ounce