By Dow Jones Newswires Staff
Global stocks weakened at the start of the week, with European shares following Asia and U.S. futures lower after Moody's downgraded the U.S.'s credit rating on Friday.
The Moody's downgrade could spark further concerns about U.S. sovereign debt and the spread of 'Sell America' sentiment triggered by the developing trade war, Tickmill Group's Patrick Munnelly said in a note.
--In Europe, the Stoxx Europe 600 opened 0.3% lower, while Germany's DAX and France's CAC 40 shed 0.1% and 0.4% respectively. Switzerland's SMI fell 0.2% while Spain's IBEX was flat.
--U.S. futures were lower, after indexes closed higher on Friday, with S&P 500 futures down 1.15%, Nasdaq stock futures fell 1.43% and those for the Dow Jones Industrial Average were down 0.87%.
--In Asia, stock markets closed mostly lower. Japan's Nikkei lost 0.7%, led by declines in electronic stocks; South Korea's Kospi ended 0.9% down. In mainland China, indexes were mixed after the latest April industrial production data showed an expansion of 6.1%, compared with a 7.7% increase in March.
--U.S. Treasury yields rose, with the 30-year yield above the key 5% level. The Moody's downgrade triggered an immediate jump in longer-term yields although the decision isn't surprising given the budgetary situation, KBC analysts said in a note. The 10-year Treasury yield last traded almost 8 basis points higher at 4.517%, while the 30-year rose 10 basis points to 5.006%, according to LSEG.
--The dollar declined amid questions about its safe-haven status, with the DXY dollar index down 0.5% at 100.610. "We believe that the market impact should be limited, but the downgrade serves as further evidence of the dire U.S. fiscal outlook and the lack of political willingness in Washington to address it," Danske Bank analysts said in a note.
--Oil prices slipped in early trade following gains last week, as market watchers focused on the Moody's news as well as talks to end the war in Ukraine. Brent crude and WTI both fell 0.7% to $64.95 and $61.52 a barrel, respectively.
--Gold prices climbed in early trade, supported by a softer dollar and continuing tariff jitters. Futures rose 1.4% to $3,231.30 a troy ounce while the dollar index was down 0.7% to 100.37, making bullion cheaper for buyers of other currencies.
Write to Barcelona Editors at barcelonaeditors@dowjones.com
(END) Dow Jones Newswires
May 19, 2025 04:21 ET (08:21 GMT)
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