📆 Wednesday, October 2
► European futures are trading little changed/slightly higher, driven by China’s stimulus measures and gains in energy stocks as Brent Crude oil prices surged over 2% following heightened tensions in the Middle East. Shares in companies such as Saab and Rheinmetall (defence industry) benefited from heightened demand due to escalating Middle East tensions. The Stoxx 600 climbed 0.2%, with London’s FTSE up 0.32%. Germany's DAX, howver, is down 0.2% amid mixed investor sentiment (Paris' CAC_40 at +0.25%). Eurozone inflation eased below 2% for the first time since 2021, increasing bets of further ECB rate cuts.
► US equity futures trade lower in US pre-market trading (-0.3%) following Iran’s missile strike on Israel, intensifying fears of a broader conflict. Tuesday’s selloff in the US saw major indexes end lower as investors fled to safe-haven assets like gold and USD. The 10-year Treasury yield ticked up to 3.76% and remained volatile, and the VIX spiked, reflecting heightened uncertainty. Markets remain focused on geopolitical developments and await further clarity on Israel's response, while cautious optimism persists amid strong US economic data.
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