European stocks opened lower and S&P 500 futures slipped as rising oil prices, higher bond yields and central bank tightening risks kept buyers defensive. Wall Street returns from a long weekend carrying strong Friday payrolls data that reinforced expectations of another Fed rate hike this month.
S&P 500 futures fell 0.2% at the European open, while Dow futures dropped 0.6%. Nasdaq futures held up better, ticking just 0.1% higher.
In Europe, the Eurostoxx eased 0.2%, with Germany's DAX down 0.2% and France's CAC 40 off 0.3%. The UK's FTSE slipped 0.1%, while Spain's IBEX and Italy's FTSE MIB each fell 0.4%.
Oil and geopolitics remain the main drag. Brent crude pushed to $98.70 while WTI crude rose back above $94 amid continued tensions between the US and Iran. Higher energy prices are reinforcing inflation concerns as markets brace for Thursday's ECB decision, where a 25 bps rate hike is widely expected.
Bond yields add to the pressure. Germany's 10-year yield held around 3.38%, its highest level since 2011. Wall Street returns to action today after the long weekend, continuing from Friday's strong US payrolls report, which reinforced expectations that the Fed could hike rates again this month.
There is no major panic selling in Europe for now. But the combination of higher oil prices, higher yields, ECB and Fed tightening risks, and continued tensions in the Middle East is keeping buyers defensive.
Source: Investinglive.com
Trading involves risk.
Risk Disclaimer
