Stocks Rebound & French Markets Face Pressure - Europe Market Wrap
US stocks rebounded from last week's chipmaker selloff ahead of key AI earnings. Nasdaq 100 futures rose 1.1% after a 5.5% weekly decline, while S&P 500 futures gained 0.5%. Chip stocks rallied 3% in US premarket trading, and Europe's Stoxx 600 fell 0.8% amid unrest in France. Short-dated Treasuries edged lower as bond markets attracted haven demand during the equity selloff. French debt underperformed safer German bonds, widening yield premiums. The Euro lagged major currencies, while the Dollar was little changed and Brent crude retreated from a five-month high. Earnings from Meta and Tesla this week will test confidence in the AI trade after concerns over rapid earnings growth and debt-funded investment weighed on tech shares. Investors will assess whether results can justify elevated spending and valuations. French stocks face prolonged volatility following violent protests over rising living costs. Citi's Manthey warned uncertainty could persist through winter and the next presidential election, depending on parliament's ability to pass debt reforms. France's elevated debt and budget deficit leave limited room for additional spending.
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US stocks rebounded from last week's chipmaker selloff ahead of key AI earnings. Nasdaq 100 futures rose 1.1% after a 5.5% weekly decline, while S&P 500 futures gained 0.5%. Chip stocks rallied 3% in US premarket trading, and Europe's Stoxx 600 fell 0.8% amid unrest in France. Short-dated Treasuries edged lower as bond markets attracted haven demand during the equity selloff.
French debt underperformed safer German bonds, widening yield premiums. The Euro lagged major currencies, while the Dollar was little changed and Brent crude retreated from a five-month high. Earnings from Meta and Tesla this week will test confidence in the AI trade after concerns over rapid earnings growth and debt-funded investment weighed on tech shares. Investors will assess whether results can justify elevated spending and valuations.
French stocks face prolonged volatility following violent protests over rising living costs. Citi's Manthey warned uncertainty could persist through winter and the next presidential election, depending on parliament's ability to pass debt reforms. France's elevated debt and budget deficit leave limited room for additional spending.