US stock futures are decreasing in line with declines across Europe and Asia, while yields, the dollar and oil rise due to the risk of escalating conflict in the Middle East. As of 8:00am ET, S&P futures are down 0.1% after closing up 0.01% on Wednesday; Nasdaq futures slide 0.3% with MegaCap Tech mixed: NVDA is up +0.7%, while TSLA extends yesterday selloff and is down -1.6% pre-market. Bloomberg’s dollar index gained for a fourth day, bolstered by a rise in Treasury yields.
In premarket trading, Levi Strauss shares slumped after the apparel company lowered its revenue growth outlook for the full year. Global equities are on course for their first weekly loss in four as the world awaits Israel’s response to a missile strike by Iran. Meanwhile, OpenAI has raised $6.6 billion in a new funding round that gave the company a valuation of almost $160 billion.
Richmond Fed President Tom Barkin on Wednesday noted progress on inflation and added the labor market is in “good shape,” but cautioned it’s too early for the central bank to declare victory. Stronger-than-expected ADP jobs data on Wednesday led traders to pare bets on aggressive Fed rate cuts.
Asian stocks also fell as Hong Kong shares took a breather after a record rally fueled by Beijing’s stimulus blitz. Japanese equities rose boosted by the plunge in the yen. The MSCI Asia Pacific Index dropped as much as 0.9%, weighed down by Chinese tech shares including Alibaba and Tencent.
In FX, the pound tumbled over 1% against the dollar, on course for its worst day against the euro since 2022 after the Guardian reported Bank of England Governor Andrew Bailey saying the central bank could be a “bit more aggressive” with interest-rate cuts.
In rates, treasuries are under modest pressure as the US trading day begins, amid steeper declines for most euro-zone bond markets and rising oil prices.
In commodities, oil prices rise for a third day as traders await Israel’s response against Iran.
Looking at today's calendar, US economic data calendar includes September Challenger job cuts (7:30am), weekly jobless claims (8:30am), September final S&P Global US services PMI (9:45am), August factory orders and September ISM services index (10am). Fed speakers scheduled include Kansas City’s Schmid (10am) and Minneapolis’s Kashkari and Atlanta’s Bostic (together at 10:40am)
Bottom Line
The escalating conflict in the Middle East is causing a ripple effect across global markets, with oil prices on the rise and stock futures on the decline. The world is anxiously awaiting Israel's response to Iran's missile strike, which could potentially escalate the situation further. Meanwhile, the Bank of England's announcement of potential aggressive interest-rate cuts has caused the pound to tumble. As the situation continues to unfold, it's crucial for investors to stay informed and make strategic decisions based on the latest developments. What are your thoughts on the current state of global markets? Share this article with your friends and discuss. Sign up for the Daily Briefing which is everyday at 6pm.
US stock futures are decreasing in line with declines across Europe and Asia, while yields, the dollar and oil rise due to the risk of escalating conflict in the Middle East. As of 8:00am ET, S&P futures are down 0.1% after closing up 0.01% on Wednesday; Nasdaq futures slide 0.3% with MegaCap Tech mixed: NVDA is up +0.7%, while TSLA extends yesterday selloff and is down -1.6% pre-market. Bloomberg’s dollar index gained for a fourth day, bolstered by a rise in Treasury yields.
In premarket trading, Levi Strauss shares slumped after the apparel company lowered its revenue growth outlook for the full year. Global equities are on course for their first weekly loss in four as the world awaits Israel’s response to a missile strike by Iran. Meanwhile, OpenAI has raised $6.6 billion in a new funding round that gave the company a valuation of almost $160 billion.
Richmond Fed President Tom Barkin on Wednesday noted progress on inflation and added the labor market is in “good shape,” but cautioned it’s too early for the central bank to declare victory. Stronger-than-expected ADP jobs data on Wednesday led traders to pare bets on aggressive Fed rate cuts.
Asian stocks also fell as Hong Kong shares took a breather after a record rally fueled by Beijing’s stimulus blitz. Japanese equities rose boosted by the plunge in the yen. The MSCI Asia Pacific Index dropped as much as 0.9%, weighed down by Chinese tech shares including Alibaba and Tencent.
In FX, the pound tumbled over 1% against the dollar, on course for its worst day against the euro since 2022 after the Guardian reported Bank of England Governor Andrew Bailey saying the central bank could be a “bit more aggressive” with interest-rate cuts.
In rates, treasuries are under modest pressure as the US trading day begins, amid steeper declines for most euro-zone bond markets and rising oil prices.
In commodities, oil prices rise for a third day as traders await Israel’s response against Iran.
Looking at today's calendar, US economic data calendar includes September Challenger job cuts (7:30am), weekly jobless claims (8:30am), September final S&P Global US services PMI (9:45am), August factory orders and September ISM services index (10am). Fed speakers scheduled include Kansas City’s Schmid (10am) and Minneapolis’s Kashkari and Atlanta’s Bostic (together at 10:40am)
