Morning bid: France's debt strains, AI in focus
TLT•France's 10-year yield topped 5% for the first time since 2002 and continued to rise as investors weighed the country's finances. Euro Stoxx 50 futures fell 1.25% and S&P 500 futures fell 0.88%.
1. French debt under pressure
France's benchmark 10-year yield topped 5% for the first time since 2002 and continued to creep higher as investors assessed the country's ability to restore its finances. Investors are watching for Moody's review of France's Aa3 sovereign rating, due October 23; the agency has a negative outlook. Planned protests and limited progress in addressing political turmoil have added to investor concerns about government spending and budget pressures.
2. Mixed global markets
The euro largely steadied after a month-long slide, while earnings from major U.S. technology companies helped lift the Nasdaq and Wall Street. SpaceX reported its first profit as a public company, easing some concerns about the sustainability and profitability of major AI investments, while Asian markets remained cautious. In early European trading, Euro Stoxx 50 futures were down 1.25% and S&P 500 futures were down 0.88%.
