France concerns weigh on Europe, while Wall Street looks to AI earnings
SPY•European shares fell as unrest in France heightened fiscal concerns, while U.S. futures rose ahead of earnings from major AI companies. Chinese growth topped forecasts, and oil prices retreated after President Donald Trump waived some Russian sanctions.
1. Europe under pressure
European shares and the euro fell on Monday, with the STOXX 600 down 0.7% and France’s CAC 40 off more than 1%, as protests highlighted the government’s struggle to reduce its budget deficit. France’s 10-year yield rose 7.3 basis points to 4.857%, while the euro fell 0.3% to $1.1203.
2. AI earnings in focus
U.S. futures rebounded, with Nasdaq futures up 1.1% and S&P 500 futures gaining 0.6%, ahead of results from Meta, Lam Research, Texas Instruments and Tesla. Five AI hyperscalers are expected to raise combined capital spending to about $1.2 trillion next year, according to Goldman Sachs; overall U.S. earnings are expected to rise about 30%, largely driven by technology.
3. Oil and China data
Brent crude fell 1.8% to $104 a barrel after Trump waived some Russian sanctions, though he said a final decision had not been made. China’s economy grew 4.5% year over year in the third quarter, slightly above forecasts, and September retail sales rose 1.1%, also beating expectations.
