BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks look set to open lower on Tuesday as investors fret over rising debt levels in Europe and tightening financial conditions.
European Central Bank President Christine Lagarde warned that rising bond yields, reflecting concerns about government debt, could weigh on economic growth and inflation.
U.S. stock futures were mixed, with Nasdaq futures declining as investors brace for earnings results from the world's biggest technology companies.
Results from SpaceX are due later in the day, followed by Tesla and Meta on Wednesday. Chipmakers Lam Research and Texas Instrument are also scheduled to unveil their financial results this week.
S&P Global has warned that hyperscalers could be carrying more AI related debt than currently visible through financing structures linked to data centers and smaller AI firms.
Asian markets traded lower, with South Korea's Kospi plunging more than 4 percent due to a chip-led AI sell-off after bond prices fell at cloud provider CoreWeave.
The IMF said it expects Asia-Pacific economic growth to slow to 4.4 percent in 2027 from 4.8 percent in 2026 and 5 percent in 2025 due to higher energy prices, rising global bond yields and uncertainty regarding AI demand.
China left its benchmark lending rates unchanged for the 17th straight month earlier today, in line with market expectations.
The U.S. dollar index weakened below 102.00 as investors assess the probabilities of changes to the Fed rate.
The euro was up marginally despite growing civil unrest across several European countries. Multiple French cities have announced curfews after riots and looting left around 3000 businesses damaged.
French President Emmanuel Macron is facing scrutiny over security failures ahead of next year's presidential election.
In Italy, the government said it would dispatch 500 army troops to 'defend Milan' following two days of unrest.
Gold held steady at $4,140 an ounce, drawing some support from a weaker dollar. Brent crude prices edged up toward $110 a barrel, holding recent gains amid escalating conflicts in the Middle East and Eastern Europe.
Iran is attacking ships more frequently than at any point in the war to assert control over the Strait of Hormuz. Saudi Arabia postponed its flagship FII conference after Houthis claimed fresh attacks across the kingdom. Elsewhere, Russia and Ukraine have resumed attacks on energy infrastructure.
U.S. Energy Secretary Chris Wright said Gulf oil flows had recovered to about 80 percent of pre-conflict levels, although refined-product deliveries remained heavily constrained amid a global refining crisis compounded by Ukraine's persistent attacks on Russian refineries.
The Trump administration is allowing investors to buy and refit sanctioned oil takers for legal oil shipments, with the global 'dark fleet' estimated at around 1,600 vessels.
U.S. stocks ended mostly higher overnight as focus shifted to upcoming AI-related earnings. Elevated oil prices and yields served to limit potential gains after renewed attacks involving Yemen's Iran aligned Houthis.
In economic news, data showed confidence among U.S. homebuilders slumped to a 14-year low in October.
The tech-heavy Nasdaq Composite surged 1.1 percent after last week's sharp sell-off and the S&P 500 added 0.4 percent while the narrower Dow finished marginally lower.
European stocks fell sharply on Monday as widespread protests across France as well as unrest in parts of Italy over poor public services and the rising cost of loving heightened concerns about mounting debt levels.
The pan-European STOXX 600 declined 0.8 percent. While the German DAX fell 1.2 percent, France's CAC 40 and the U.K.'s FTSE 100 both dropped by 1.1 percent.
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