Treasuries Gain as US Stock Futures Reduce Weekly Drop – Europe Market Wrap

US stock futures indicated to gains at the Wall Street open, as investors overlooked a rise in borrowing prices that had dampened market confidence earlier in the week.

Contracts for the S&P 500 increased 0.2%, implying that the underlying gauge could recover from its first weekly decline in seven. Treasury yields fell for a second day, leaving the 10-year note rate up around one-tenth of a percentage point this week.

Traders are looking to US economic data next week, notably a monthly payrolls report, for new signals on the scope of Fed interest rate decreases. Some economists forecast a stock market gain if Donald Trump wins the November 5 presidential election in the US, while others fear that it may fuel inflation and limit the rate of Fed easing.

Following disappointing results from companies such as French Cognac producer Remy Cointreau and Mercedes-Benz Group, Europe’s Stoxx 600 index remained relatively unchanged. The regional stocks measure is expected to fall 1.2% this week.

After a two-day decline, oil prices resumed their upward trend, with traders focusing on Middle Eastern geopolitical developments and supply prospects.