US futures are down after some modest selling yesterday, with financials leading the downside despite a positive start to earnings season. The cause? Zions Bancorp and Western Alliance Bancorp disclosed ties to fraud-linked loan exposure and that's making for worries about wider scale lending fraud in the system.
The drop yesterday continues to weigh on the broader market mood today, with US futures also lower across the board. S&P 500 futures are down 0.5% with tech shares also feeling heavy. In Europe, major indices missed out on the late dump in the US and are having to play catch up in the session ahead. Eurostoxx futures are down nearly 1% with DAX futures lower by 1.2% currently as we look to the session ahead.
In the bond market, Treasury yields are also slumping as bonds stay more bid with 10-year yields cracking below the 4% mark. That's a key level to be wary of and in part is also helping to fuel the gains in the likes of gold towards the end of the week. The precious metal is up another 1% to $4,367 currently, recovering well from the dip to $4,280 earlier in Asia trading.
