US and European Stock Futures Gain, Dollar Weakens: Markets Wrap

(Bloomberg) — US and European equity-index futures rose alongside Asian shares, signaling Wall Street’s advance after an in-line inflation reading may extend.

Contracts for the S&P 500 and the Nasdaq 100 rose after both indexes gained on Friday, snapping three days of declines. European stocks were also set for a stronger open. Asian shares erased earlier losses to advance 0.6% with the mainland China gauge jumping 2%. Japanese shares fell as ex-dividend stocks weighed on the benchmarks.

Oil declined as expectations that OPEC+ will hike production again in November exacerbated concerns about a glut. Gold climbed to a record above $3,800 an ounce. A Bloomberg gauge of the dollar headed for a second day of declines, weighed down by month-end flows and the risk of a US government shutdown. Treasuries rose across the curve.

Top congressional leaders plan to meet with President Donald Trump on Monday, just a day before federal funding runs out if lawmakers can’t agree on a short-term spending bill. The measure, which would only fund the government until mid-November, must pass by Oct. 1 to avert a shutdown that could delay key economic data and unsettle markets.

In the event of a shutdown, “federal workers will be furloughed, which could act as a drag on US economic activity, and things like official economic releases will be put on hold,” Peter Dragicevich, a strategist at Corpay Inc., wrote in a note. “The failure to avoid a government shutdown could further highlight the more challenging backdrop in the US which in turn may exert downward pressure on the dollar.”

US stocks saw dip buying on Friday while the Treasury yield curve marginally steepened as the personal consumption expenditures price index, the Federal Reserve’s preferred measure of inflation, came in as expected.

Traders maintained expectations of a high likelihood the central bank will cut the funds rate again next month in a bid to help bolster a cooling labor market, according to swaps data compiled by Bloomberg.

What Bloomberg’s Strategists Say…

There is the threat of a government shutdown, but traders have seen this movie before and will expect a last-minute compromise.

— Mark Cranfield, MLIV macro strategist. Click here for the full analysis.

Washington will be the focus as the top four congressional leaders are due to meet with Trump. A government shutdown would threaten the release of data including Friday’s payrolls report, a key gauge for assessing whether the Federal Reserve will continue cutting interest rates next month.

“If this happens, I think traders hate that,” Gareth Nicholson, chief investment officer at Nomura International Wealth Management, said on Bloomberg Television. “They hate uncertainty. Labor market is a huge indicator of where risk is gonna go.”

Chinese equities were in focus in Asia amid signs that policies to address overcapacity and deflation in the economy began to take hold ahead of the Golden Week holiday that begins Wednesday.

Chinese industrial profits in August climbed 20.4% from a year earlier, the first increase in four months, according to data released Saturday by the National Bureau of Statistics. Factory deflation eased for the first time in six months.

Part of the rebound reflected last year’s low base and the government’s recent push to rein in overcapacity in sectors like electric vehicles and heavy industry, said Dilin Wu, a strategist at Pepperstone Group. The numbers give the market “a welcome confidence boost,” Wu said.

“Policy support and stabilization efforts are starting to take effect, which should give short-term relief to investors concerned about corporate earnings,” Wu said.

Corporate News:

Nidec Corp. discovered more suspected cases of improper bookkeeping, including some involving a Swiss subsidiary. Sony Financial Group Inc. shares opened 37% above the reference price in their Tokyo debut after Sony Group Corp. spun off and listed the company in a move to focus on its entertainment and image sensor businesses. Chinese precious metals and rare earth stocks gained after the government announced plans to push for breakthroughs in the materials industry in order to boost supply and support new technology and electric vehicle chains. Jaguar Land Rover has sought £2 billion ($2.7 billion) in emergency funding from global banks as the carmaker tries to ease the financial strain of a cyberattack that forced it to halt production, the Economic Times reported. Shares of Alibaba Group Holding Ltd. rallied as analysts touted improving growth prospects for the company’s cloud and artificial intelligence businesses. First Brands Group and certain of its affiliates have filed voluntary petitions for Chapter 11 relief in the US Bankruptcy Court for the Southern District of Texas. Denmark’s Genmab A/S agreed to acquire Merus NV, a Dutch drugmaker that’s developing a treatment for cancer of the head and neck, for about $8 billion. Some of the main moves in markets:

Stocks

S&P 500 futures rose 0.3% as of 6:53 a.m. London time Nasdaq 100 futures rose 0.4% The MSCI Asia Pacific Index rose 0.5% Japan’s Topix fell 1.7% Australia’s S&P/ASX 200 rose 0.8% Hong Kong’s Hang Seng rose 1.9% The Shanghai Composite rose 1.1% Euro Stoxx 50 futures rose 0.5% Currencies

The Bloomberg Dollar Spot Index fell 0.2% The euro rose 0.2% to $1.1726 The Japanese yen rose 0.4% to 148.82 per dollar The offshore yuan rose 0.3% to 7.1231 per dollar The British pound rose 0.3% to $1.3440 Cryptocurrencies

Bitcoin rose 0.9% to $111,808.14 Ether rose 1.6% to $4,116.32 Bonds

The yield on 10-year Treasuries declined two basis points to 4.15% Japan’s 10-year yield declined 2.5 basis points to 1.630% Australia’s 10-year yield declined five basis points to 4.34% Commodities

Spot gold rose 1.3% to $3,810.13 an ounce West Texas Intermediate crude fell 0.6% to $65.30 a barrel This story was produced with the assistance of Bloomberg Automation.

–With assistance from Michael G. Wilson, Joanne Wong and Winnie Hsu.

©2025 Bloomberg L.P.