European and US stock futures edged higher on Wednesday, October 14, as investors assessed changing signals from central banks, awaited key US inflation data and reacted to stronger-than-expected Chinese trade figures.
The positive mood followed comments from US Federal Reserve officials that investors interpreted as less aggressive on interest rates. Markets increasingly expect the Fed to leave borrowing costs unchanged at its October meeting, although persistent inflation could complicate that outlook.
US consumer price data for September was a major focus. Economists expected monthly inflation to accelerate to 0.6%, from 0.4% in August, while the annual rate was forecast to rise to 3.6% from 3.4%. The figures could influence expectations for the Fed’s next policy decisions.
In Asia, China’s exports jumped 36.3% year-on-year in September, comfortably exceeding forecasts, while imports increased 31%. Strong overseas demand supported the figures, offering a boost to markets sensitive to China’s industrial activity and global trade.
Currency markets also reflected shifting expectations. The US dollar weakened against several major currencies as traders reassessed the interest rate outlook. Meanwhile, oil prices remained elevated amid renewed security concerns in the Middle East, adding to inflation worries.
Global financial leaders meeting in Bangkok also faced growing concerns about public debt, with international officials urging governments to strengthen their fiscal positions.
Investors are now watching US inflation figures, central bank commentary and corporate earnings for clearer signals on the direction of markets and the global economy.
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