Stock futures rise and oil falls as Brazilian shares slump after Lula’s win
U.S. stock futures rose early Monday after back-to-back weekly losses for the S&P 500, as oil prices fell from a six-month high, CNBC and Bloomberg reported. U.S.-listed Brazilian stocks dropped sharply before the open after President Luiz Inácio Lula da Silva won Brazil’s runoff election. These are premarket moves, not closing prices.
Futures and oil: S&P 500 futures were up 0.3%, Dow futures added 266 points, or 0.51%, and Nasdaq-100 futures gained 0.22%, CNBC reported early Monday. Brent crude fell about 2% to around $114.50 a barrel and U.S. crude slid to about $101, according to CNBC. Bloomberg reported that the decline came as Iran prepared to host regional security talks.
Brazil: Petrobras fell 21% in premarket trading, Itaú Unibanco 26% and Ambev 19%, CNBC reported. Reports on the iShares MSCI Brazil ETF differed: CNBC said it fell nearly 20% overnight before paring losses to 18%, while Bloomberg reported it tumbled 27% in premarket trading. Investors had favored Lula’s rival, Flávio Bolsonaro, according to Bloomberg.
The week ahead: The Federal Reserve announces its rate decision on Wednesday, followed by the European Central Bank on Thursday and the Bank of Japan on Friday, CNBC reported. Fed funds futures suggest a 90% chance the Fed holds rates at 3.75% to 4%, though Bank of America expects a quarter-point hike, according to CNBC. Alphabet and Microsoft report Wednesday and Amazon on Thursday.
Elsewhere: French bonds rallied after Moody’s kept France’s Aa3 rating with a negative outlook, Bloomberg and CNBC reported. The 10-year Treasury yield held at about 4.99%, Bloomberg reported. These are early figures and can change by the close; this is not investment advice.