Stock Index Futures Gain as Investors Recover Risk Appetite

Trade and Economic Agreements - The U.S. and U.K. have reached an agreement allowing tariff-free imports of pharmaceutical products, with the U.K. increasing net prices for new medicines by 25% and capping drugmaker rebates to the NHS at 15% [1] U.S. Economic Indicators - U.S. rate futures indicate an 87.2% probability of a 25 basis point rate cut by the Fed, with economic data showing the ISM manufacturing index fell to a 14-month low of 48.2, while the S&P Global manufacturing PMI was revised to 52.2 [2] Stock Market Performance - Wall Street's main indexes closed lower, with Moderna dropping over 7% due to FDA concerns about Covid-19 vaccines, while Synopsys gained over 4% after Nvidia's $2 billion investment [3][4] Global Economic Outlook - The OECD forecasts U.S. economic growth at 2% for this year and 1.7% for next year, while global growth is projected at 2.9% next year, down from 3.2% this year [5] European Market Developments - The Euro Stoxx 50 Index rose by 0.58%, driven by bank stocks after the Bank of England adjusted capital requirements, while Eurozone inflation unexpectedly increased to 2.2% year-on-year [7][8] Asian Market Trends - China's Shanghai Composite Index closed down 0.42% as investors await key policy meetings, with AI-related stocks retreating due to profit-taking [10] Japanese Market Insights - Japan's Nikkei 225 closed flat amid speculation of a near-term rate hike by the Bank of Japan, while financial stocks outperformed [11]