(Bloomberg) -- European stocks and U.S. equity futures paused Wednesday as traders sought fresh catalysts to extend the latest tech-driven gains.  

Contracts on the S&P 500 were steady in holiday-thinned trade, after the index hit its 31st record high of 2024, powered by another surge in artificial intelligence bellwether Nvidia Corp., now the world’s most valuable company. The pan-European Stoxx 600 slipped 0.2 per cent after two days of gains, while bond yields across the euro area edged higher. The Brazilian real slid ahead of today’s rate decision.

Despite a recent wobble driven by French political tensions, European stocks still stand about two per cent off their latest record highs. Wall Street, meanwhile, has been lifted by the continued AI frenzy and resilient economic growth that should continue to support corporate earnings, especially in the technology sector. U.K. data on Wednesday added to signs inflation is slowing across the developed world, potentially allowing central banks to cut interest rates. 

“We are in a soft landing scenario, central banks have started easing policy or will start to ease soon, and we may be facing a wave of positive productivity shock thanks to technology,” said Benoit Anne, head of investment solutions at MFS Investment Management. “Put all that together and you have a very supportive environment for global equities.” 

While U.S. Treasuries aren’t trading on Wednesday, government bond yields across Europe edged higher. U.K. 10-year government borrowing costs rose about three basis points and the pound firmed, despite data showing inflation had slowed to the Bank of England’s two per cent target, as price pressures remained sticky in the key services sector. 

The data all but rules out a rate cut at the BOE’s Thursday meeting, according to Zara Nokes, global market analyst at JPMorgan Asset Management. 

“If this stickiness in domestic price pressures continues, alongside ongoing resilience in economic activity, an August rate cut could well be off the table too,” she said.

Investors also kept an eye on developments in France, which got a scolding from the European Union for breaking the bloc’s deficit and debt rules. French 10-year bond yields rose almost four basis points, while the spread relative to their German peers stayed at the widest since 2017 amid concerns that the upcoming snap election will result in a win for far-right groups with high-spending policies. 

While the selloff in French assets has abated somewhat, the political risks are keeping investors and companies on edge. On Wednesday, Italian sneaker firm Golden Goose Group SpA pulled the plug on its initial public offering, citing a “significant deterioration in market conditions.”

Key events this week:

  • U.S. Juneteenth holiday, Wednesday
  • China loan prime rates, Thursday
  • Eurozone consumer confidence, Thursday
  • U.K. BOE rate decision, Thursday
  • U.S. housing starts, initial jobless claims, Thursday
  • Eurozone S&P Global Manufacturing PMI, S&P Global Services PMI, Friday
  • U.S. existing home sales, Conf. Board leading index, Friday
  • Fed’s Thomas Barkin speaks, Friday

Some of the main moves in markets:


  • S&P 500 futures were little changed as of 1:39 p.m. New York time
  • Futures on the Dow Jones Industrial Average fell 0.2 per cent
  • The MSCI World Index was little changed
  • S&P 500 futures were little changed
  • Nasdaq 100 futures rose 0.2 per cent to a record high
  • The MSCI Asia Pacific Index rose one per cent
  • The MSCI Emerging Markets Index rose 1.2 per cent
  • S&P/BMV IPC was little changed
  • Ibovespa Index fell 0.1 per cent


  • The Bloomberg Dollar Spot Index was little changed
  • The euro was little changed at $1.0745
  • The British pound was little changed at $1.2717
  • The Japanese yen was little changed at 157.94 per dollar
  • The offshore yuan slipped 0.1 per cent, more than any closing loss since June 5
  • The Mexican peso fell 0.1 per cent to 18.4328
  • The Brazilian real fell 0.8 per cent to 5.4765 per dollar


  • Bitcoin rose 0.2 per cent to $65,031.86
  • Ether rose 2.9 per cent to $3,560.41


  • The yield on 10-year Treasuries was little changed at 4.22 per cent
  • Germany’s 10-year yield was little changed at 2.40 per cent
  • Britain’s 10-year yield advanced two basis points to 4.07 per cent


  • West Texas Intermediate crude was little changed
  • Spot gold was little changed

This story was produced with the assistance of Bloomberg Automation.