Wall Street futures drop as Yen strengthens
European stocks opened lower on Monday and Wall Street futures signalled further declines as markets reacted to comments from the Bank of Japan suggesting a possible rate hike. The yen strengthened sharply, and Japanese government bond yields rose, adding pressure to global risk appetite.
By early afternoon, the STOXX 600 had fallen 0.6%, Germany’s DAX slid 1.5% and London’s FTSE 100 dipped 0.2%. U.S. futures were also weaker, with the S&P 500 and Nasdaq set for losses ahead of remarks from Federal Reserve Chair Jerome Powell, News.Az reports, citing Reuters.
Market sentiment turned cautious as bitcoin tumbled more than 6% and gold climbed to a six-week high, supported by expectations of U.S. rate cuts.
The yen surged after BOJ Governor Kazuo Ueda said policymakers would examine the pros and cons of raising interest rates at their next meeting. The move lifted the yen to 155.49 per dollar and pushed two-year JGB yields to their highest level since 2008. Analysts said the shift raised fears that Japan’s ultra-cheap funding for global carry trades may soon tighten.
The dollar index weakened while the euro firmed. European bond yields edged higher as investors awaited key euro zone inflation data. Fresh PMI surveys showed manufacturing weakness across Europe and Asia.
This week’s U.S. economic releases — including manufacturing, services and consumer sentiment — will shape expectations ahead of the Fed’s Dec. 9–10 meeting. Markets currently expect a high probability of a 25-basis-point rate cut.
Oil prices moved higher as Brent crude rose around 1% after a drone attack halted Caspian Pipeline Consortium exports and U.S.–Venezuela tensions renewed concerns over supply.
Similar news
