Ten-Year Yields Climb & US Futures Gain on Trump Bets – Europe Market Wrap

Following an attempted assassination, investors increased their bets that Donald Trump would win the presidential election, which caused US stock futures to rise and longer-maturity bonds to decline.

S&P 500 futures increased 0.4%, while in premarket trade, Trump Media & Technology Group surged 67%. For the first time since January, the US 30-year yield exceeded the two-year yield due to speculation that Trump, should he win back the White House, would implement a more liberal fiscal programme. While Bitcoin surged to its highest level in over two months, the Mexican peso plummeted more than 1% versus the US dollar.

Later on Monday, Mary Daly, the president of the San Francisco Fed, and Fed Chair Powell are also scheduled to speak. Economic data released last week supported wagers on two rate reductions in 2024.

Europe’s stocks were in poorer shape, with the Stoxx 600 index slipping. The largest negative factor in Burberry’s 15% decline following an earnings warning was the luxury industry. After releasing a poor update, Swatch Group AG plummeted. Weak Chinese economic growth data hurt mining stocks.