Stock and Bond Futures Advance as Oil Declines: Markets Wrap
(Bloomberg) — Stock and bond futures advanced as oil retreated, with traders looking past the latest attacks on Saudi Arabia that threatened to widen the war in the Middle East.
Futures for the S&P 500 Index rose 0.3%, while those for Europe gained 0.5%. Asian equities lagged, with MSCI’s regional stocks gauge dropping 0.2% as South Korean shares slid 2.9% as trading resumed after a long weekend. Meanwhile, Goldman Sachs Group Inc. turned overweight on stocks for three months on earnings growth.
Brent crude dropped 0.8% to $103.91 a barrel after climbing to as high as $105.63 in early trade following weekend strikes by Yemen’s Houthis on Riyadh’s main airport. Traders weighed resilient Middle East flows against rising regional tensions and a US claim that Russia and Ukraine had agreed to a so-called energy ceasefire.
Treasury futures edged higher alongside government bonds in Australia and New Zealand. There’s no trading of cash Treasuries globally on Monday due to a US holiday. Elsewhere, India’s rupee strengthened 1% after the central bank unveiled some of its strongest measures to support the currency since the 2013 taper tantrum.
Geopolitical risks have returned to the fore after the Houthi attacks raised the prospect of a broader conflict and further disruption to energy supplies. With little sign of a near-term resolution to the crisis in the Strait of Hormuz, oil may remain a source of inflationary pressure ahead of price data in the US and Europe this week.
“Our base case right now is that near-term energy prices remain elevated,” Yiping Liao, a portfolio manager at Templeton Global Investments, said on Bloomberg Television. “We don’t see a near-term resolution to the Hormuz crisis, certainly not before the US midterms.”
Earlier, Trump said the “energy ceasefire” was effective immediately, without providing details. Trump had previously announced a similar ceasefire, though Ukrainian President Volodymyr Zelenskyy later said no deal had been finalized and the war continued.
Last week, Trump said he was working with President Vladimir Putin to release Russian diesel to the market. While European diesel futures tumbled as much as 8.3% on Monday, traders have questioned the long-term impact on Russia’s additional exports
What Bloomberg’s Strategists Say…
“US equities are primed to make fresh highs this week as financials kick off 3Q earnings season. Rising rates are placing a higher hurdle that most stocks are failing to clear, yet robust tech results should keep headline index momentum intact.”
— David Savage, Macro Squawk. Click here for the full analysis.
Elsewhere, talks between China and the EU ended late Friday with a 16-point consensus spanning trade and investment, export controls and intellectual property rights. The EU said China agreed to slash millions of hybrid car exports, with people familiar with the discussions saying the bloc intends to use safeguard measures to curb the imports.
Later in the week, investors will look to US consumer-price data and a scheduled appearance by Federal Reserve Chair Kevin Warsh for clues on the pace of further rate increases.
A stronger-than-expected September inflation reading may rekindle the recent bond selloff by putting pressure on the Fed to tighten policy more aggressively. The 10-year Treasury yield approached 5.4% last week, its highest since 2002.
Investors are mulling how high bond yields are starting to do some of the heavy lifting for central banks around the world by pushing up borrowing costs.
“For now, rising interest rates are not seen as overwhelming the growth and earnings story,” said Rebecca Patterson, senior fellow at the Council on Foreign Relations and former Bridgewater Associates LP chief investment strategist. “We can have equities and bond yields rise together. But if interest rates continue to rise, in part as central banks tighten, the risks grow that rates start to dominate and weigh on equity sentiment.”
Some of the main moves in markets:
Stocks
S&P 500 futures rose 0.3% as of 6:52 a.m. London time Nasdaq 100 futures rose 0.3% The MSCI Asia Pacific Index fell 0.3% Hong Kong’s Hang Seng rose 0.1% The Shanghai Composite fell 0.3% Euro Stoxx 50 futures rose 0.5% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1203 The Japanese yen was little changed at 158.36 per dollar The offshore yuan was little changed at 6.6940 per dollar The British pound was little changed at $1.3241 Cryptocurrencies
Bitcoin rose 0.4% to $83,887.59 Ether rose 1% to $2,562.24 Bonds
Australia’s 10-year yield declined two basis points to 5.32% Commodities
Spot gold was little changed West Texas Intermediate crude fell 1.1% to $90.84 a barrel This story was produced with the assistance of Bloomberg Automation.
–With assistance from Abhishek Vishnoi and Ruth Carson.
©2026 Bloomberg L.P.
