Global markets getting slammed

July 3, 2013: 9:08 AM ET
S&P Futures 9am
Click chart for more premarkets data.
NEW YORK (CNNMoney)

Investors' appetite for risk evaporated around the globe Wednesday amid renewed political instability in Europe, violent clashes in Egypt and concerns about rising oil prices.

U.S. stock futures were lower by roughly 0.3%, bouncing back somewhat after better-than-expected jobs numbers were released. Global markets fell.

Both first-time unemployment claims and ADP's monthly figures on private-sector payrolls came in above expectations.

As for Friday's report, economists surveyed by CNNMoney predict the U.S. economy added 155,000 jobs and the unemployment rate fell to 7.5% in June.

Related: Suntory toasts $4 billion IPO windfall

Major European stock markets fell by about 1.7% in midday trading as investors worried that political turmoil in Portugal could reignite the region's debt crisis and a credit rating downgrade hit European banks.

"Portuguese political pandemonium continues today as austerity fatigue has led to the resignation of several key ministers and we could now be looking at the possibility of early elections," said Lee McDarby, head of corporate and institutional treasury dealing at Investec Bank.

Portugal's 10-year government bond yields hit 8% and the country's benchmark stock index shed more than 6% Wednesday after the finance minister stepped down and the foreign minister announced his resignation. Portuguese opposition parties are calling for an early election, though Prime Minister Pedro Passos Coelho insists he will not resign.

Credit rating agency Standard & Poor's downgraded three European banks -- Credit Suisse (CS), Deutsche Bank (DB) and Barclays (BCS) --- citing worries over the size of their investment banking portfolios and the impact of new regulations. Shares in all three banks were dropping by roughly 3%.

Meanwhile, Asian markets ended with losses. The Hang Seng index led the move down, dropping by 2.5% as investors fretted over slower economic growth prospects in China. The Shanghai Composite index slipped 0.6% and the Nikkei in Japan eased 0.3%.

Related: Fear & Greed Index mired in extreme fear

American investors head into Wednesday awaiting a pair of reports that will serve as a prelude to the government's closely watched monthly jobs report Friday.

U.S. stocks gave up early gains to finish lower Tuesday as clashes in Egypt intensified. U.S. markets conclude trading at 1 p.m. ET Wednesday and will be closed Thursday in observance of Independence Day.

Join the Conversation
Markets
Sponsored by
Index Last Change % Change
Dow 17,098.45 18.88 0.11%
Nasdaq 4,580.27 22.58 0.50%
S&P 500 2,003.37 6.63 0.33%
Treasuries 2.34 0.01 0.39%
Data as of 8:44pm ET
Company Price Change % Change
Bank of America Corp... 16.09 0.08 0.50%
Apple Inc 102.50 0.25 0.24%
Intel Corp 34.92 0.27 0.78%
Facebook Inc 74.82 0.96 1.31%
General Electric Co 25.98 -0.03 -0.12%
Data as of Aug 29
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.07%4.28%
15 yr fixed3.18%3.26%
5/1 ARM3.36%3.43%
30 yr refi4.05%4.21%
15 yr refi3.17%3.18%
View rates in your area
 
Find personalized rates:
Rate data provided
by Bankrate.com