The 10-year French-German yield spread was up ahead of a no-confidence vote against the French government and UniCredit said a government crisis would would likely put additional pressure on OATs, but a small relief rally could be expected if the government survived the vote.
While the unexpected declaration of martial law was promptly struck down by parliament, the episode is likely to leave a bad taste in investorsβ mouths.
Gold was steady in the early Asian trade. The market has a mix of influencing factors that make it difficult to determine the precious metalβs price direction, XS.com said.
The FTSE 100 is expected to open around 0.4% lower, with the French government facing a no-confidence vote and most likely collapse this evening, Danske Bank said.
U.S. natural gas futures settled lower for a second straight session as warmer temperature forecasts for later this month imply less demand than had been expected.
Treasury yields declined ahead of Octoberβs JOLTS report due at 10 a.m. ET. Odds of an interest-rate cut this month rose to 73% on the CMEβs FedWatch tool, from 62% Monday.
Oil was around 1% higher ahead of Thursdayβs OPEC+ output policy meeting where it is widely expected to delay its planned production restart beyond January to rebalance the market and protect prices, ANZ said.
U.S. stocks swung between small gains and losses as traders increased their bets on an interest-rate cut this month. The Nasdaq Composite was poised to hit a new record.