(Bloomberg) — S&P 500 futures were little changed, with the index heading for its first weekly drop in seven as rising borrowing costs put a chill on investor sentiment.
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The US stocks benchmark is set for an almost 1% loss in the week after a surge in Treasury yields fueled risk-off moves across markets as traders scaled back expectations for Federal Reserve rate cuts. Even after paring some of their advance, Treasury yields are still up around 10 basis points in the week.
Europe’s Stoxx 600 index dropped 0.2% as analysts parsed the latest raft of company results, with French Cognac maker Remy Cointreau SA and Italian energy giant Eni SpA cutting guidance.
Traders are looking ahead to economic data next week, including a monthly payrolls report, for clues on the future scope of policy easing by the Fed. A US presidential vote that’s too close to call on Nov. 5 is also weighing, with some analysts warning that the trade tariffs and tax cuts favored by Donald Trump could reignite inflation.
Corporate Highlights:
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Remy Cointreau slashed its annual sales guidance on weak demand in the US and China where consumers continue to cut spending.
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Eni lowered profit guidance for the year, reflecting a worsening oil-price outlook, even as third-quarter earnings beat analyst estimates.
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Electrolux reported operating profit for the third quarter that missed the average analyst estimate.
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NatWest Group Plc raised its outlook for the year after earnings beat estimates in the third quarter.
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Mercedes-Benz Group AG plans to step up cost improvement measures after fierce competition and weaker demand in China hit the luxury-car maker’s profits.
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Thames Water Utilities Ltd. unveiled a proposal on Friday that seeks to raise up to £3 billion ($3.9 billion) from its creditors to buy it more time to avoid going into special administration early next year.
In Asia, the yen was stuck in a range against the dollar ahead of the weekend’s election that may see Japan’s ruling coalition lose its majority in the lower house of parliament for the first time since 2009. Such an outcome would weaken the yen and Japanese stocks, according to strategists.
China’s central bank kept its one-year policy rate unchanged, after slashing funding costs by the most on record a month ago, suggesting authorities are cautiously pacing monetary stimulus to support the economy.
