Stocks Fall Amid Focus on Trump’s Picks and US Data – Europe Market Wrap

US equities futures crept lower as traders absorbed Trump’s latest cabinet choices and looked ahead to a slew of economic data for signals on interest rate expectations.

Contracts on the Nasdaq 100 fell 0.3%, while those on the S&P 500 dropped 0.2%. Treasuries rose, lowering the 10-year benchmark yield by 4 bps to 4.27% ahead of a batch of pre-Thanksgiving holiday US data, including the Fed’s preferred inflation indicator and an update on economic growth.

The Euro climbed to its highest level of the day as ECB’s Schnabel advised against reducing interest rates too aggressively. Analysts at Goldman Sachs, JPMorgan, and Citi have identified the Euro as one of the most vulnerable to Trump’s tariff program.

Middle East tensions eased somewhat when President Joe Biden announced that Israel had secured a cease-fire agreement with the Lebanese militant group Hezbollah following weeks of discussions mediated by the US.

Oil prices stabilised as signals that OPEC+ will postpone restarting some output countered the lessening of geopolitical risk following the cease-fire agreement.