Stocks Struggle as Europe Woes Dent Risk Appetite - Europe Market Wrap

Global stocks struggled for direction as political turmoil and mounting concerns over Europe’s public finances weighed on risk sentiment, pushing the Euro to a 17-month low against the Dollar. Markets opened the week with Europe firmly in focus after policy gridlock in France triggered a selloff in the region’s more vulnerable debt. The unease spread to Spain after PM Sánchez called an early election amid intensifying housing protests. The Euro fell 0.4% against the Dollar, while German bonds held firm as haven demand increased. Yields on French, Italian and Spanish debt rose, while Treasuries were marginally weaker at the long end. US equity futures were softer, with S&P 500 futures down 0.2% and Nasdaq 100 futures slightly below last week’s record high. The CAC 40 fell in Europe, while Asian stocks largely followed Friday’s US rally. Brent crude traded around $102 a barrel as markets weighed Middle East supply risks. Saudi Arabia cut prices for its benchmark grade to Asia, while concerns over low stockpiles and escalating fighting in Yemen kept traders cautious.