U.S. Futures, Global Markets Mixed; Sterling Slips After U.K. Inflation Data

By Dow Jones Newswires Staff

U.S. futures and global markets were mixed ahead of another heavy earnings session, while gold recovered after falls in the prior session. Sterling fell on lower than forecast U.K. inflation data.

--U.S. futures for the S&P 500 were up 0.1% and futures for the Dow Jones Industrial Average were flat after the DJIA closed at a new record Tuesday and the S&P hit its third historic closing high after strong earnings reports.

--In Asia Japan's Nikkei and China's Shanghai indexes were virtually flat, while the Hong Kong Hang Seng index was 0.95% lower. "The downturn in the region's stock markets was partly driven by a selloff in precious metal-related stocks, stretching from Australia to China and Indonesia," Patrick Munnelly, Partner at Tickmill Group wrote.

--London's FTSE 100 index was the only riser in Europe--up 0.7%--led by mining companies after a recovery in gold prices. Fresnillo, Endeavour Mining and Rio Tinto shares were up 4.2%, 3.1% and 3.1%, respectively. Other European markets were down, with Germany's DAX 0.35% lower, France's CAC 40 down 0.5% and the Stoxx 600 index off 0.2%.

--U.S. 10-year Treasury yields remained near fair value even as they fell below 4%, says Russell Investments' BeiChen Lin in a note. Russell's base case is that with the softening labor market, service inflation should be relatively tame, allowing the Federal Reserve to look through near-term noise and continue with another rate cut this month. In Asian trade, the 10-year Treasury yield rose 0.5 basis points to 3.967%, according to Tradeweb.

--Eurozone government bond yields were little changed after market opening, with the U.K.'s September CPI data potentially limiting rises in yields. U.K. headline inflation came in at 3.8% on the year, below analysts' expectations of 4.0% in The Wall Street Journal's poll, although still way above the Bank of England's 2% target. The 10-Year German Bund yield declined 0.3 basis points to 2.552%, the 10-Year French OAT yield was up 0.4 basis points at 3.350%, the 10-year Italian BTP yield edged 0.4 basis points higher to 3.349% and the 10-year Spanish bond yield was up 0.3 basis points at 3.087%, according to Tradeweb.

--Sterling fell after data showed U.K. headline inflation unexpectedly held steady in September and core inflation eased. "One good inflation number won't push the Bank of England into a rate cut, which the economy could do with, but maybe there is some light at the end of a long dark tunnel," Premier Miton Investors analyst Neil Birrell said in a note. Sterling fell to a one-week low of $1.3329 after the data from $1.3381 beforehand. The euro rose to a five-day high of 0.8705 pounds from 0.8676.

--The Wall Street Journal Dollar Index was flat at 96.21.

--The U.S. Energy Department's plans to partially refill its strategic oil reserves were supporting prices, ANZ analysts write. Brent crude rose 1.7% to $62.38 a barrel and WTI was up 1.8% to $58.28 a barrel. The U.S. plans to buy oil for delivery in December and January as it looks to boost reserves which are 60% full, the analysts say. They estimate it could buy around 3 million barrels based on current prices.

--Gold prices recovered slightly after tumbling Tuesday. In early trade, futures in New York were up 1.4% at $4,170 a troy ounce. Spot gold had its steepest selloff in years. It fell as much as 6.3% during the session Tuesday as investors locked in profits after its rally to record highs, ANZ analysts write. Despite the retreat, the long-term drivers of gold's rise remain in place and will support prices, the analysts say.

Write to Barcelona Editors at barcelonaeditors@dowjones.com

(END) Dow Jones Newswires

October 22, 2025 04:50 ET (08:50 GMT)