Live Markets-Oil up, bond yields up, can stocks hold on?
SPY•Stocks to watch and index rebalancing
It's going to be a day where the macro picture dominates but worth keeping an eye on BP, which has appointed a new chair after the drama earlier this year.
Some index rebalancing could also have an effect.
Finnish telecom equipment maker Nokia Oyj is set to rejoin the Euro STOXX 50 index a year after being dropped, while Volkswagen will be removed.
Oil and bond yields rise as stocks face pressure
Brent is up at $95 a barrel as the U.S. and Iran exchange attacks, contributing to a global rise in bond yields that has pushed ECB sensitive 2-year German yields to two-year highs and benchmark 10-year German yields to 15-year highs.
So no surprise stock futures are pointing to a lower open.
The surprise, if anything, is that Euro STOXX 50 futures are only down around 0.35%, with futures for most other major indexes down a similar amount. Remember the STOXX 600 is only a couple of percent off its lifetime peak hit early last month.
Can it stay there? Well stocks bulls will point to strong earnings growth in the second quarter, despite high energy prices that time round, and if some of this selloff in bonds is to do with real yields, and some of that is to do with growth, then maybe it can.
On the other hand, well Brent isn't far from $100 a barrel, and borrowing costs this high can't help.
