Regional indices gave back their morning gains as oil prices and bond yields ticked back up from session lows. The Eurostoxx, DAX, and CAC 40 all turned lower, while US index futures pared their earlier advance.
European stocks erased their early gains heading into midday in London, as oil and bond yields edged back up from the day's lows. The Eurostoxx slipped 0.2%, Germany's DAX fell 0.1%, and France's CAC 40 dropped 0.5% on the day.
US futures softened alongside their European counterparts. S&P 500 futures turned flat, while Nasdaq futures slipped 0.1% on the day.
There isn't necessarily one clear catalyst behind the reversal in risk sentiment. Instead, it reflects how fragile the relief has been after this week's moves in oil and bonds. Earlier in the session, both oil prices and bond yields eased from their recent highs, which took some pressure off equities at the open. But as those two edged back up, investors grew less comfortable holding onto the rally.
WTI crude rose 1.5% to $90.30, off an earlier low near $88.60. Meanwhile, 10-year Treasury yields nudged up to 5.22% from a low of around 5.20% earlier in the session.
Both remain well below this week's peaks, so the latest move isn't another major escalation. Still, neither issue has gone away, and that keeps equities on edge. As long as oil and yields stay elevated, rallies may struggle to build much momentum even if the worst of this week's swings continues to hold.
Source: investingLive
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