European markets were lower on Thursday morning as investors awaited the latest U.S. inflation data for further signs that price pressures are easing.
The pan-European Stoxx 600 index was down 0.14% by 9:35 a.m. London time, with sectors and major stock exchanges diverging. Insurance stocks led the gains, rising 0.49%, as the devastation caused by Hurricane Milton in Florida showed a strong outlook for the sector. Meanwhile, competitive pressures caused further woes for European automakers, with autos down 0.55%.
Economists polled by Dow Jones forecast a 0.1% increase from the previous month and a 2.3% increase from the previous 12 months.
The results will also influence the Fed’s next policy steps at its November meeting. Federal funds futures trading data suggests the chance of a quarter-point rate cut is about 70%, according to CME Group’s FedWatch tool.
U.S. stock futures were little changed Wednesday night, with Asia-Pacific markets opening mostly higher on Thursday, supported by Wall Street’s gains on Wednesday.
The S&P 500 and Dow Jones Industrial Average hit new records as investors shrugged off geopolitical concerns and reacted to the release of the Fed’s September meeting minutes, which cut key interest rates by 50 basis points. “Participants” supported larger interest rate cuts.
