Following Selloff, Stock Futures Rise & Gold Reaches $3,000 – Europe Market Wrap
Global equities rose as the prospect of a US government shutdown faded, alleviating at least one source of anxiety for investors. Gold soared beyond $3,000 per ounce on haven demand.
S&P 500 contracts jumped 0.8% as a stopgap funding bill appeared to be on track to pass in Congress after Senate Democratic Leader Schumer decided not to veto it. That’s helped raise the atmosphere after the benchmark index pushed its three-week loss above 10% on Thursday, the technical threshold for a correction. Futures on the Nasdaq 100 rose 1%, with Nvidia leading premarket advances.
Avoiding a government shutdown would reduce uncertainty for traders, who are already concerned about dangers to the global economy from Trump’s tariff fight. Two months into his administration, $5 trillion has been depleted from US markets, and the S&P 500 is poised for its fourth consecutive loss-making week.
In Europe, the Stoxx 600 index rose 0.8%, with mining and consumer shares also benefiting from Beijing’s decision to hold a news conference Monday to outline initiatives to encourage consumption.
The likelihood of more borrowing and expenditure is weighing on Euro-area bonds, raising German 10-year borrowing costs by approximately 7 bps. French rates rose to their highest level since 2011, amid fears that Fitch Ratings might cut the country’s credit rating later in the day.
