U.S. stock futures remained steady in early European morning trade as concerns over French fiscal stress weighed on the euro and raised fears of contagion across the continent. Major U.S. indexes were little moved after a sharp Friday rise, driven by weak jobs data that reduced expectations for Federal Reserve rate hikes. Futures for the Dow Jones Industrial Average and S&P 500 slipped 0.1%, while Nasdaq futures were flat.
Asian markets mostly gained, with Japan’s Nikkei climbing 2.4%, and indexes in mainland China, Hong Kong, and Korea also rising. European stocks were mixed, with the Stoxx 600 up 0.4% in volatile trade. Political pressures mounted globally: French budget concerns were compounded by Spanish leader Pedro Sanchez’s call for a snap election, and Flavio Bolsonaro’s surprise first-round election win in Brazil added uncertainty.
The euro fell to a 16-month low against the U.S. dollar, and spreads between French and German 10-year yields widened. Oil prices declined after Saudi Arabia cut prices for Asian buyers, with Brent crude falling 1.1% to around $101 a barrel and WTI dropping 1.6% to below $90. Bitcoin rose 0.6% to around $86,300, and gold gained 0.5% but stayed below $4,200 a troy ounce.
Investors await the September ISM services index and Fed meeting minutes for further economic signals.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing