
Stock futures experienced a rise on Sunday evening as traders anticipated a series of central bank announcements this week. S&P 500 futures increased by 0.4%, while Dow Jones Industrial Average futures gained 128 points or 0.2%. Nasdaq-100 futures climbed by 0.6%. The U.S. Federal Reserve, European Central Bank, and Bank of Japan are scheduled to announce their rate decisions on Wednesday, Thursday, and Friday, respectively.
Read More
Asian markets showed mixed results on Monday. The Topix index in Japan was up 0.37%, though the Nikkei 225 fell by 0.2%. South Korea's Kospi declined by 0.3%, while the Kosdaq experienced a larger drop of 1.18%. Meanwhile, Australia's S&P/ASX 200 index was down by 0.26%.
Oil prices also decreased on Monday, with Brent crude futures falling by 1.31% to approximately $115.19 per barrel and U.S. West Texas Intermediate slipping by 1.5% to $101.83 per barrel. This decline follows a rise to the highest levels since April amid reports of potential U.S. and Israeli strikes on Iran after the midterm elections.
The recent downturn saw the three major U.S. averages close lower on Friday, as the Dow Jones dropped over 650 points and the S&P 500 fell by 0.5%, contributing to consecutive weekly losses for the index and the Nasdaq Composite.
In the context of global financial stability, France's 10-year bond yield reached 5% last week for the first time since 2002. Moody's retained France's Aa3 credit rating, projecting that a significant fiscal effort will be essential following the 2027 presidential elections to stabilize the country's financial standing, as its debt burden is anticipated to exceed 120% of GDP.
Traders are especially focused on the Federal Reserve's upcoming decision, with futures indicating a 90% probability that interest rates will remain unchanged in the current target range of 3.75% to 4%. However, Bank of America forecasts a potential rate increase of a quarter percentage point, with economist Claudio Irigoyen noting that this could challenge Chair Warsh's strategy on forward guidance.
In corporate news, Elon Musk announced that SpaceX secured $40 billion in debt financing to acquire GPUs for AI systems. Additionally, Brazil's Luiz Inácio Lula da Silva won a historic fourth presidential term, defeating Senator Flávio Bolsonaro, who has refused to concede. Lula gained 51.8% of the votes compared to Bolsonaro's 48.2%, while the iShares MSCI Brazil ETF saw a significant drop following the election results.