Geopolitical risks and inflation concerns drive pre-market declines as traders await US consumer price index figures.
US equity futures extended losses as escalating US-Iran tensions and anticipation of the US CPI report fueled risk aversion. S&P 500 futures fell 1.0%, while Nasdaq futures dropped 1.5%, reflecting broader market unease ahead of the inflation data release later today.
Oil prices remained supported, with WTI crude rising 1.5% to $89.50, while the US dollar held steady. US 10-year yields edged up 1.4 bps to 4.54%, and gold declined 2.3% to $4,165. Bitcoin also fell 2% to $60,898 amid the risk-off sentiment.
Traders are bracing for potential volatility, with concerns that hotter-than-expected inflation could trigger further market selloffs. The Bank of Japan’s upcoming meeting adds to the uncertainty, though Governor Ueda’s hospitalization may delay policy decisions.