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The Breakfast Briefing: U.S. Futures Drop, Following A Sharp Fall Seen In Markets Overseas
FYI: Global stocks were lower on Monday, as risk assets continued to come under pressure from rising bond yields and a steep drop in Chinese stocks.
The Stoxx Europe 600 fell 0.6% in mid-morning trade, dragged down by the banking and energy sector. Italian stocks sold off and government bond yields rose to multi-year high amid continuing unease around the country’s budget.
On Wall Street, futures pointed to an opening loss of 0.2% for the S&P 500.
U.S. government bond yields rose to their highest level since 2011 last week amid data that painted a picture of a still booming U.S. economy. The unemployment rate in September fell to the lowest since 1969, data showed Friday.
But as yields continue to rise, some investors are pulling back from riskier assets as holding risk-free ones becomes more attractive. Higher borrowing costs could also cool the pace of the economic expansion. Regards, Ted
