Stock futures steadied on Thursday after a selloff during the regular trading day.
London's FTSE 100 slipped 0.2% and Germany's DAX lost 0.1%, both well off session lows. "Equity markets across the U.S. and Europe are quite expensive now and with bond yields constantly rising, the fixed income market is proving to be more attractive than the riskier equity market," said Roland Kaloyan, a strategist at SocGen. "Investors are actually looking at the pace at which yields drop and the current speed is quite concerning for equity markets."
Global stocks fell on Friday, with Asian shares down by the most in nine months, as a rout in global bond markets sent yields flying and spooked investors amid fears the heavy losses suffered could trigger distressed selling in other assets. MSCI's Emerging Markets equity index suffered its biggest daily drop in nearly 10 months and was 2.7% lower, while European shares opened in the red, with the STOXX 600 down 0.7%, recovering from heavier losses earlier in the session. The MSCI world equity index, which tracks shares in 50 countries, was 0.9% lower and heading for its worst week in a month.