SP and Nasdaq futures rise
EU Stoxx dip slightly
Weak PMIs, Spain election on Europe
Markets priced for 25bp hikes by Fed and ECB

London, July 24 Reuters European stocks slipped while U.S. stock futures rose, as weak EU business activity data and an inconclusive Spanish election result could not deter U.S. optimism that the end of central bank rate hikes is approaching.

German business activity contracted in July, increasing the likelihood of a recession in the second half of the year, the German Flash Composite Purchasing Managers39; Index PMI showed.

This together with news that no clear winner had emerged from Spain39;s snap election on Sunday piled onto a sombre mood that pulled European markets lower.

The euro slipped 0.25 against the dollar, government bond yields across the bloc edged lower while European stock markets dipped, with Spain39;s benchmark index down 0.65 in a clear underperformance.

Meanwhile, U.S. stock futures , rose 0.2 and 0.3, respectively, pointing to a positive open for Wall Street.

With the Federal Reserve, European Central Bank and Bank of Japan meeting this week, a note of caution underpinned the mood across global markets.

The upcoming meetings of the FOMC fed and the ECB are anticipated to result in a 25 basis points increase in rates from both institutions, accompanied by hawkish forward guidance, said Bruno Schneller, a managing director at INVICO Asset Management.

The decision for subsequent hikes in September hinges on both…