US futures and European stocks advanced Friday as investors assessed whether monetary tightening to tackle inflation is getting closer to being priced in. Global equities were set for their first weekly rise in a month as a gauge of dollar strength dropped.
The euro touched the highest level in three weeks after the ECB raised rates 75 basis points Thursday. Bets the Federal Reserve will hike by the same margin later this month increased after chair Jerome Powell reiterated the Fed is determined to curb price pressures. The Bank of England deferred its Sept. 15 rates announcement by a week due to the period of national mourning being observed in the UK.
Treasuries trimmed a retreat, with the policy-sensitive two-year yield still near the highest since 2007. The Bloomberg Dollar Spot Index slipped as much as 1 per cent, while the pound rallied against the greenback. Oil advanced and gold climbed, while Bitcoin soared the most in more than a month.