US Stock Futures Remain Stable While Oil Reduces Its Rise – Europe Market Wrap
US market futures held steady after three days of falls, as oil prices retreated from the day’s highs and investors waited to see if the Middle East conflict would intensify further.
Contracts for the S&P 500 Index rose 0.2%, reversing an earlier dip, after the index plummeted to its lowest level since November. In premarket trading, a gauge of the Magnificent Seven technology stocks climbed marginally. Crude oil futures remained around $100 per barrel, after trading above $102 earlier on Friday. Europe’s Stoxx 600 index also reversed its drop.
In currencies, the Dollar rose 0.4% after reaching its best level in over two months. The Euro and Yen, both vulnerable to high oil prices, dropped, with the Japanese Yen reaching its lowest point since 2024, approaching levels where authorities had previously interfered to stabilise it.
The changes come at the end of a pivotal week. The recent rhetoric from Trump and Iranian leader Khamenei signals that there will be no fast easing in a battle that is disrupting oil shipments and raising fears about increasing inflation. A worldwide equity index was poised for a second week of losses, having slid from record highs reached prior to the conflict.
Treasuries showed little movement. However, a measure of their volatility has risen to a nine-month high as traders pared back their expectations for Fed rate cut. They now expect fewer than 20 bps in rate cuts this year, compared to 61 bps before the war.
