U.S. futures were up and global markets were mixed after last week’s tech selloff on high valuation concerns and artificial-intelligence spending, with most indexes closing lower on Friday although still ended the week up after hitting new records. The tech-heavy Nasdaq closed slightly higher Friday after earlier losses, but still ended the week down, marking its worst two-week performance since April. Gold and oil were down.
–Futures for the S&P were up 0.7% and the Dow Jones Industrial Average were 0.3% higher, while Nasdaq futures were up 1% after last week’s selloff. Earnings for Nvidia, a bellwether for the AI trade, will be closely monitored when the chipmaker reports Wednesday. “Whatever the results, they are likely to be market moving and could well set the scene for the investor outlook for the remainder of the year,” Interactive Investor head of markets Richard Hunter writes.
–Asian shares closed mostly lower, with Japan’s Nikkei weighed down by tourism-related stocks after China issued an advisory to its citizens about traveling to Japan, citing security concerns. Japan’s Nikkei closed 0.1% lower. In mainland China, ChiNext was down 0.2%, while Shanghai fell 0.5%. The Shenzhen closed flat. Hong Kong’s Hang Seng index was down 1.1%. South Korea’s Kospi, however, closed up 1.9%, supported by technology stocks like SK Hynix and Samsung.
–European markets were mostly higher to start the week. London’s premier FTSE 100 index was up 0.06%, Germany’s DAX was 0.1% higher and the STOXX 600 index was up 0.02%. However, France’s CAC 40 was down 0.1%. Burberry shares are down 3.8% on tension in Asia according to ii’s Hunter, while WPP shares are up 4.5% on a Sunday Times report that the advertising company had attracted takeover interest.
–The dollar traded steady as investors await the release of delayed U.S. jobs data for clues on whether the Federal Reserve will cut interest rates again next month. The September nonfarm payrolls report will be published Thursday following the reopening of the government. Markets will also dissect the Fed’s meeting minutes on Wednesday and U.S. purchasing managers’ data on Friday. “The December meeting is a coin toss as the Fed still wouldn’t have enough data to be convinced one way or the other,” Jefferies economist Mohit Kumar says in a note. The DXY dollar index trades flat at 99.336.
–Sterling could see renewed falls if U.K. inflation data on Wednesday show price pressures eased in October, ING’s Chris Turner says in a note. Economists in a WSJ survey expect inflation fell to 3.6% in October from 3.8% in September. The euro fell 0.1% to 0.8812 pounds after hitting a two-and-a-half-year high of 0.8865 Friday, LSEG data show. Against the dollar, sterling traded flat at $1.3173.
–U.S. Treasury yields declined during early European trade as market attention increasingly turns to the Federal Reserve’s December meeting following a data hiatus during the government shutdown. “Data releases starting this week should provide a clearer picture for one of the key risks over the coming weeks–the December Fed meeting,” Jefferies’ Mohit Kumar says in a note. The two-year Treasury yield fell 1.4 basis points to 3.599%, the 10-year Treasury yield declined 0.9 basis points to 4.138% and the 30-year yield edged lower 0.2 basis points to 4.743%, according to Tradeweb.
–German Bunds remained vulnerable even at 10-year yields above 2.70% as long as headwinds from U.S. Treasurys and gilts persist, Commerzbank Research’s Rainer Guntermann says in a note. The 10-year Bund yield rose 0.9 basis points to 2.72% in early trade, according to Tradeweb.
–Greek government bonds moved in line with eurozone peer bonds after Fitch Ratings upgraded Greece’s credit rating to BBB from BBB- with a stable outlook. Pointing to Greece’s progress in debt reduction, Fitch forecasts the country’s gross general government debt-to-GDP to fall by nine percentage points to 145% in 2025, following a 10 percentage point decline in 2024. The 10-year Greek bond yield rose 0.8 basis points to 3.357%, while the 10-year German Bund yield was up 0.6 basis points at 2.717%, according to Tradeweb.
–Bitcoin struggled to recover after hitting a six-and-a-half-month low overnight as risk appetite remains weak. Bitcoin rose 2.4% to $95,717 after hitting a low of $92,988 overnight, LSEG data show.
–Oil prices fell in early trading following reports that loadings at a key Russian export terminal have resumed after a Ukrainian attack. Brent crude and WTI were both down 0.5% to $64.06 and $59.61 a barrel, respectively, after rallying at the end of last week.
–Gold prices slipped in early trading as investors scale back expectations of a December interest-rate cut by the Federal Reserve. “Softer expectations for looser policy followed cautious comments from Fed officials, while the six-week U.S. government shutdown has delayed key labour and inflation data, leaving policymakers more reluctant to commit to another move,” says Soojin Kim from MUFG. Gold futures in New York were down 0.1% to $4,088.70 a troy ounce.
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