21/10/2022
🟡 Pre-market Outlook For US Stocks ‖ Three major stock index futures fall in tandem 10-year US bond yields rise above 4.3%
The three major US stock index futures fell in tandem in the pre-market outlook for US stocks on October 21 (Friday). As of press time, Dow futures fell 0.65%, S&P 500 futures fell 0.66% and Nasdaq futures fell 0.93%.
Germany's DAX index fell 1.32%, the UK's FTSE 100 index fell 0.78%, France's CAC 40 index fell 1.81%, the European Stoxx 50 index fell 1.56%.
The yield on the 10-year US Treasury note climbed to 4.235% at one point during the morning session on Friday, having touched 4.239% during yesterday's wild upward trend. The inversion of the 10-year US bond yield curve continued, with the yield on the more policy-sensitive 2-year US Treasury note surging to 4.638% at one point today, setting a new high since 2007.
European gas prices fell as the EU backed measures such as a price cap. At press time, benchmark Dutch TTF gas futures prices were down more than 8% at 116.91 euros per megawatt hour. European leaders were unanimous in their support for urgent measures, including price caps, to curb the energy crisis sweeping the economy.
In addition, a Barclays report suggests that the Federal Reserve may have to slow or stop the pace of its nearly $9 trillion balance sheet reduction, which may be faster than many currently expect.
