US and European Stock Futures Indicate a Moderate Rebound – Asia Market Wrap

European and US equity markets were set for a slight recovery Monday, following a selloff prompted by cooling US employment data, which also pushed Asia’s benchmark stock index to a three-week low.

Futures for the S&P’s 500 Index and the Euro Stoxx 50 Index both rose after the underlying gauges fell Friday on weaker-than-expected US payrolls data. The report left analysts and traders divided about how aggressively the Fed will lower interest rates.

Shares in Asia followed Friday’s global losses, with shares from Taiwan to Australia falling on concerns that global economy is weakening. Japan’s Nikkei 225 Stock Average fell for the fifth straight day, as iron ore fell below $90 per tonne for the first time since 2022.

Treasuries and the Yen, both favoured havens, pared some of Friday’s gains. The US two-year yield rose four basis points to 3.69%, after falling ten basis points on Friday. The Yen fell 0.5% to 142.99 per dollar, after rising 0.8% on Friday.

China’s CSI 300 Index fell as much as 1.2%, extending its drop from this year’s high in May to more than 13%. A further decrease would push the benchmark to levels not seen since early 2019, implying that years of policy efforts to boost the economy and support share values have been ineffective.