And ahead of the new trading week, let's go to Chicago. Fintech TV correspondent Mark Payton is live from the steamboat trading floor. Good morning Mark. Great to have you on. So give us a take on what you're seeing in pre-market activity this morning.
Hey. Good morning. Yeah, we're starting the week pretty quiet in the equity market, but bond market continues to get a lot of attention. SPX futures are little change this morning. While Russell 2000 futures are up about a quarter of a percent. And here at sea though the VIX is around 16.2. Still relatively low considering some of the moves we've been seeing in bonds.
The ten year Treasury yield is around 5.28% this morning. Again still pretty elevated. So that's really the interesting setup this morning. Stocks have been pretty resilient. Volatility remains relatively low but borrowing costs are still sitting at levels we haven't seen in more than two decades.
We did get some relief on Friday after that weaker than expected jobs report. The economy added just 29,000 jobs in September, and unemployment came in at 4.2%. That reduced expectations for another fed rate hike this month. That helps stocks rally on Friday. But despite that softer jobs report, Treasury yields still remain pretty high.
So that's something I'll be watching this week. Whether stocks can continue to hold up if yields stay around these levels. We'll get another read on the economy this morning with ISM services at 9 a.m. central time. And then Wednesday we'll get the minutes from the Fed's September meeting. So a lot of data coming in pretty soon Remy.
Yeah. And indeed it is a packed calendar around the globe. But U.S. investors are also keeping an eye on what's happening across the Atlantic with fiscal as well as political strains in Europe as we kick off the week. So how closely are cyber traders tracking turmoil across the Atlantic this morning?
There's a lot going on. So political and fiscal uncertainty in France is putting pressure on the European markets. And now Spain is adding to those concerns. France is really at the center of it. The French ten year yield is around 4.9% this morning, after moving close to 5% last week, levels we haven't seen roughly in two decades.
So investors are concerned about France's growing debt, its budget deficit and political gridlock over how to get those finances under control. And here's another number that really stands out. The gap between French and German ten year borrowing costs widened to nearly 160 basis points on Friday.
That's the widest we've seen in about 15 years. Going back to the European debt crisis and now Spain is adding another layer of political uncertainty. Prime Minister Pedro Sanchez has called a snap election for November 29th, following growing pressure over the country's housing crisis. All of this is weighing on the euro, which at a 17 month low against the dollar this morning.
There's a lot happening in Europe right now, and it's certainly something for U.S. investors to keep an eye on. The question is whether some of that stress eventually makes its way across the Atlantic. Remy.
Yeah, a lot to keep our eyes on, especially in the FX as well as bond markets. Appreciate your time this morning as well as your insights.
Thank you.
