Bond yield pressure and US jobs report in focus for futures markets

Macro & central banks

• US monetary policy: Dallas Fed President Lorie Logan stated that the target rate range still needs to rise by 50 basis points or more, as inflation remains above the 2% target. However, she noted that the recent rise in bond yields could reduce the need for further manual tightening.
• Bond market pressure and oil spike: Sovereign bond markets remain under tension. In Europe, the French 10-year yield reached 4.942%, its highest level since 2002, while the spread against the German Bund widened to 1.37 percentage points. Meanwhile, Brent crude surged 3.7% to $101.62 per barrel, reigniting inflation fears.
• China economic outlook: Bank of America expects Beijing not to launch a more aggressive stimulus plan in the near term unless exports or fiscal conditions deteriorate sharply.

Indices & tech

• US futures moving higher: Ahead of the open, futures on the Dow Jones, S&P 500, and Nasdaq 100 are pointing up by roughly 0.3%.
• Drop in European equities: The CAC 40 closed down 1.62% at 7,835.31 points, severely dragged down by the banking sector (Société Générale -5%, Crédit Agricole -3.7%, BNP Paribas -3.64%).
• Tech sector and earnings: Capgemini surged 7.38% in Paris, supported by better-than-expected quarterly results from US peer Accenture (+7% revenue growth, $22.2 billion in new orders). Conversely, Nike plunged over 8% in extended trading following disappointing revenue guidance.

Key events today

• US Non-Farm Payrolls: Release of non-farm payrolls and the unemployment rate for September in the United States.
• Bond market volatility: Monitoring sovereign yield movements and spreads to assess global fixed income stress and its impact on futures indices.