A global stock rally fueled by softer US jobs data looked set to lose steam as concerns over Europe’s political and fiscal outlook weighed on sentiment.
The euro weakened. European stock futures fell 0.2%, erasing earlier gains, while S&P 500 contracts also turned lower.
MSCI’s Asia Pacific equities index, however, gained 1% after a tech-led Wall Street rally drove the Nasdaq 100 Index to a record close Friday.
The euro fell to its weakest level against the dollar since May 2025 as reports that Spanish government officials are preparing for an early election added to investor concerns over political and fiscal risks across the region.
The shared currency slid as much as 0.8% to $1.1161. A Bloomberg gauge of the US currency advanced 0.3%. German bond futures rose, while those for French debt declined.
Investors remained on alert for signs of contagion in Europe’s government bond market after a selloff last week triggered memories of the region’s debt crisis 15 years ago.
