Stock Futures Decline Before US Inflation Gauge: Markets Wrap

(Bloomberg) — European and US stock futures fell on speculation investors are trimming positions before the release of a US inflation gauge that may help shape the outlook for Federal Reserve policy.

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Shares in Asia slipped after China announced new curbs on online gaming, pummeling some of the region’s largest technology shares including Tencent Holdings Ltd. and NetEase Inc. Oil extended its biggest weekly gain in two months as shippers avoided the Red Sea amid increased attacks, while Angola’s exit from OPEC after 16 years put the spotlight on the group’s unity.

The US core personal consumption expenditures price index probably fell to 3.3% in November from 3.5% the previous month, according to a Bloomberg survey of economists before the numbers are released later Friday.

“The focus today is on core PCE tonight and one should be mindful of the razor-thin liquidity heading into the festive season as data surprise may exacerbate price movement,” said Christopher Wong, a foreign-exchange strategist at Oversea-Chinese Banking Corp. in Singapore.

Asian shares gave up earlier gains after technology shares in Hong Kong plummeted when China unveiled a slew of new measures to rein in spending and content in online games. The sweeping restrictions suggest Beijing is getting ready to launch another crackdown on the world’s largest mobile gaming arena.

Treasuries traded in tight ranges before the PCE data, while the dollar rose against most of its Group-of-10 peers and gold was on track for a weekly gain.

Swaps traders are pricing in around 150 basis points of Fed cuts next year, twice as much as the central bank has signaled as US GDP growth was revised lower Thursday to a 4.9% annualized reading in the third quarter. Personal consumption data also came in softer than economists had anticipated.

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