European stocks tumbled down along with U.S. futures on Friday. Investors contemplated political upheaval in France and reported conflict among policymakers over a stimulus package for the single-currency region.
In the U.S., futures on the S&P 500 Index plummeted down by 0.4%. Meanwhile, the Stoxx Europe 600 Index lowered by 0.6%.
On the other hand, the MSCI Asia Pacific Index surged forward by 0.9%. The MSCI Emerging Market Index also soared by 0.9%.
In Europe, the Stoxx 600 Index tumbled down after a new report showed that the European Central Bank is facing a potential rift. THE ECB is trying to decide how much their emergency bond-purchase program should stay weighted toward countries that suffered the most from the pandemic.
The euro dropped as French President Emmanuel Macron asked his government to resign and named a new prime minister afterwards.
The friction at the ECB shows the possible risk to markets if promised stimulus measures fall short. Investors are weighing policy support and upbeat economic data against the surge in new outbreaks of the virus.
What’s happening in the U.S.?
Contracts on the main U.S. stock gauges also lowered after fluctuating earlier in the session. American markets for bonds and cash equities are shut on Friday for Independence Day. The U.S. dollar was steady through today’s session. But it is still headed for its first weekly drop in a month. Gold also fell below $1,800 an ounce.
Florida reported that infections and hospitalizations skyrocketed to their highest point so far, and Houston had a boost in intensive-care patients. However, U.S. payrolls figures fueled optimism of a V-shaped recovery in the world’s biggest economy on Thursday.
Chris Gaffney, the president of world markets at TIAA Bank, stated that there’s still a generally positive sentiment about how quickly economies will recover globally. However, analysts think that investors are going to see the recovery level off, especially if the coronavirus case numbers continue rising.