Premarket: Traders await U.S. inflation test, China revives stocks rally

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U.S. futures sit lower ahead of key economic release

European shares failed on Thursday to follow overnight gains in the U.S. and China, while the dollar sat near a two-month high before U.S. inflation data.

The U.S. 10 year yield was up 2 bps at 4.084%, its highest since late July. It has jumped 24 bps in the past week, largely on the back of a Friday’s much hotter than expected payrolls data.U.S. share futures were down around 0.1% on Thursday after the S&P 500 and the Dow had both closed at record highs on Wednesday.

That’s below its recent highs above 80, but still well above the around 50 bps it had been before President Macron called parliamentary elections in June. “We believe the consensus is expecting around 2 trillion to 3 trillion yuan in size of fiscal stimulus measures,” said Richard Tang, China strategist at Julius Baer.It’s been a volatile week for Chinese markets.

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