Europe before the bell: Stock futures down; yields, oil up
SPY•Stock futures slip as energy and bond markets react to Middle East tensions
Oil prices are rising for a second day on Tuesday after the first exchange of direct attacks between the U.S. and Iran in a month, pushing up bond yields and restraining European stock futures.
Euro STOXX 50 futures STEXcv1 are down about 0.2% heading to the open. Futures on the DAX FDXc1 are off about 0.4% while FTSE futures FFIc1 are down 0.5% after British markets were closed on Monday.
The re-escalation of the conflict in the Middle East has been felt most in energy and bond markets.
Brent crude futures LCOc1 are up 1% after a near 3% rise on Monday, while benchmark European gas prices TRNLTTFMc1 are at their highest in 3-1/2 years and stocks at their lowest on record for this time of year.
Rising energy prices are stoking inflation worries, pushing up bond yields across the globe. Germany's 10-year bond yield DE10YT=RR has hit its highest in over 15 years this morning, while Japan's 10-year yield JP10YTN=JBTC has reached 3% for the first time in 30 years.
