European Futures Fall as China’s Stimulus Disappoints

European futures dipped 0.1% on Monday, as Beijing’s latest stimulus package left investors unimpressed due to a lack of detailed financial commitments. While Hong Kong shares dropped, mainland Chinese stocks managed to trade higher. Investors also have their eyes on upcoming data, including China's Q3 growth figures and the European Central Bank's rate decision.

Equities

The FTSE 100 ended 0.2% higher on Friday but registered a 0.3% decline over the week. UK stocks were pressured by China’s lack of specific economic stimulus measures and losses in major companies like Sainsbury’s. Sainsbury’s shares dropped 5.9% after the Qatar Investment Authority reduced its stake in the company, while BP's stock slipped 0.3% following its forecast that third-quarter profits would be hit by weak refining margins, with a possible reduction of up to $600 million.

The FTSE 250 index fell around 1% over the week, with industrial metal miners down 3.5%, driven by lower base metal prices in response to China’s economic situation. Other notable movers included Jupiter Fund Management, down 1.8% after reporting lower assets under management and outflows of £1.6 billion in the third quarter. On the positive side, Saga saw its shares jump 9.1%, as it entered exclusive talks with Belgian insurer Ageas to form a 20-year motor and home insurance partnership.

In the US, the S&P 500 and the Dow both closed at record highs, buoyed by strong earnings from major financial institutions. JPMorgan Chase saw its shares rise by 4.4% after exceeding third-quarter profit expectations and raising its interest income forecast. Wells Fargo also beat analysts' forecasts, with its stock rallying 5.6%, while BlackRock gained 3.6% after reporting record-high assets under management for the third consecutive quarter.

Tesla’s stock, however, slumped 8.8% following the unveiling of its long-awaited robotaxi, which lacked details on production and regulatory issues. This weighed on the consumer discretionary index, which saw downward pressure during the session. Overall, the S&P 500 gained 0.61%, while the Dow climbed 0.97% and the Nasdaq edged up by 0.33%.

US Treasury yields dipped, with the 2-year yield down 5 basis points to 3.949% and the 10-year yield slightly lower at 4.089%, as inflation data further supported expectations for an upcoming Federal Reserve interest rate cut.

Forex & Commodities

The US dollar held its gains, rising 0.13% against the Japanese yen at 149.27 as traders assessed China's weekend stimulus plans. The euro fell 0.13% to $1.0922, while the British pound was down 0.2% at one point but remained largely unchanged. The dollar index edged just above 103, nearing last week's peak, supported by reduced expectations of further large rate cuts from the Federal Reserve this year.

China’s yuan weakened by 0.2% against the dollar after Beijing's announcement of additional stimulus measures to support economic growth lacked key details, leaving investors disappointed. The Australian dollar, closely tied to China's fortunes, fell 0.16% to $0.67385.

Gold prices remained steady, with spot gold at $2,657.93 per ounce, as markets weighed China’s stimulus measures. Platinum dropped 1% to $974.88, while silver fell 0.4% to $31.39 per ounce.

Oil prices also fell amid concerns over China's faltering economy, with Brent crude down 1.1% at $78.18 per barrel and West Texas Intermediate falling 1.2% to $74.73. Both benchmarks gave up last week’s gains, as deflationary pressures in China stoked fears about reduced fuel demand.