US Futures Drop as Traders Parse Big Bank Earnings – Europe Market Wrap
US equity futures dipped as investors examined earnings from some of Wall Street’s biggest banks, ending a hectic week for traders that saw a dramatic pullback in bets on interest rate reduction.
JPMorgan fell 4.4% in premarket trading after missing estimates on full-year net interest income. Wells Fargo fell 1.2% after missing NII in its first-quarter report, while Citi Contracts’ figures for the S&P 500 fell 0.5% and those for the tech-heavy Nasdaq 100 dropped 0.6%.
European equities rose the highest in more than two months, powered by mining and oil sectors, as simmering Middle Eastern concerns pushed commodity prices higher. Brent rose beyond $90 a barrel as traders anticipated Iran’s response to a deadly attack on its diplomatic complex in Syria last week. Gold surpassed $2,400 per ounce. Base metals maintained their climb on rising supply worries and a better outlook for demand.
The euro fell to its lowest level versus the dollar in five months, as expectations grew that the European Central Bank would begin unwinding its record hiking campaign in June, long before the Federal Reserve began reducing due to persistent US inflation. Markets anticipate three rate cuts in the Eurozone this year and fewer than two by the Fed.
