European Automakers Collapse and US Prospects Are Muted – Europe Market Wrap

US share futures moved modestly after last week’s record highs on Wall Street, with traders already anticipating significant data on the American labour market on Friday and its implications for Fed interest rate cuts.

The S&P 500 and Nasdaq 100 contracts remained stable. Chinese stocks registered in the US rose in premarket trade on the latest economic stimulus measures announced by officials. Treasury rates rose, driven by the policy-sensitive two-year note. The Dollar remained quite stable.

Europe’s Stoxx 600 index fell 0.8%, led by manufacturer falls after Jeep maker Stellantis lowered its profit margin prediction. On Friday, Volkswagen issued its second earnings warning in three months.

That contrasted with the atmosphere in China, where the CSI 300 Index rose as much as 9.1%, the biggest since 2008, boosted by the stimulus package. The policy changes also boosted European mining and luxury stocks. Political changes in Europe add an extra element of complexity. Following Sunday’s historic triumph in Austria’s national elections, the country’s established political powers have pledged to prevent the far-right Freedom Party from establishing government.

In commodities, oil prices held steady as the market digested the aftermath of Israel’s execution of Hezbollah leader Hassan Nasrallah in Beirut and China’s stimulus measures.