US futures rebound on tech, Europe slips as unrest in France weighs

Europe: pressure from France

• The Stoxx Europe 600 slipped 0.33%, the CAC 40 lost nearly 1%, the DAX fell 0.4% and the FTSE 100 was flat.
• Widespread protests across France over the weekend weighed on the CAC 40 and revived sovereign risk concerns in the euro area's second largest economy.
• Investors remain cautious ahead of a busy week of corporate earnings.

US indices and tech

• US futures rose Sunday evening after a difficult week: the Nasdaq Composite fell 4.5%, ending a four-week winning streak, and the S&P 500 lost nearly 2%, its worst weekly drop since late June.
• The Dow Jones gained 0.7% over the week.
• In early trading, S&P 500 futures rose 0.8% to 7,765.00, Nasdaq 100 futures gained 1.4% to 29,787.25 and Dow Jones futures added 0.5% to 52,482.0.
• Worries about the cost of financing AI infrastructure and the sustainability of tech valuations weighed on growth stocks. The rebound remains tentative.
• Several tech majors report this week, a direct test of sentiment for the Nasdaq.
• In Europe, Bank of America highlights Technoprobe as one of its two favourite small and mid cap European semiconductor stocks. The bank sees it as the most AI exposed name in its group and upgraded it to Buy from Neutral in May.

Oil, Iran and China

• Oil prices fell after Donald Trump announced sanctions exemptions for Russia, reviving hopes of higher global crude supply.
• On Iran, Foreign Minister Abbas Araqchi said the proposal to reopen the Strait of Hormuz within seven days remains on the table. Talks have largely stalled: Washington insists Iran must end its nuclear programme, while Tehran demands the lifting of the US naval blockade and easier sanctions on its oil exports.
• In China, growth rebounded in the third quarter, but CXMT shares fell despite a return to profit.

What to watch today

• Earnings from major tech companies through the week, especially on AI spending.
• Political and social developments in France and their impact on the CAC 40 and sovereign risk.
• Follow-up on US Iran discussions and the seven-day Hormuz proposal put forward by Tehran.
• Oil's sensitivity to any news on sanctions affecting Russia.