US stock futures up, oil down on hopes Syria attack a one-off

US STOCK futures firmed and oil fell on Monday as investors wagered the latest US-led strike on Syria would not escalate into a wider conflict, though Asian markets turned mixed as selling in bank shares slugged Chinese indexes.

SYDNEY — US stock futures firmed and oil fell on Monday as investors wagered the latest US-led strike on Syria would not escalate into a wider conflict, though Asian markets turned mixed as selling in bank shares slugged Chinese indexes.

EMini futures for the S&P 500 rose right from the start and were last up 0.40%, while Eurostoxx 50 futures added 0.27%.

Japan’s Nikkei rose 0.30%. Yet MSCI’s broadest index of AsiaPacific shares outside Japan slid 0.40% as Chinese blue chips skidded 1.7%.

Real estate and financial firms led declines as Chinese authorities continue to tighten the screws on riskier types of financing in a bid to reduce systemic risks.

The early mood had been one of relief that the well-telegraphed attack on Syria had been limited in scale.

The US, France and Britain launched 105 missiles targeting what the Pentagon said were three chemical weapons facilities in Syria in retaliation for a suspected poison gas attack in Douma on April 7.

Russian President Vladimir Putin warned on Sunday that further Western attacks on Syria would bring chaos to world affairs, as Washington prepared to increase pressure on Russia with new economic sanctions.

But with President Donald Trump declaring mission accomplished, investors assumed the worst had been avoided.

“Trump was able to enforce his chemical weapons red line without crossing the threshold for Russian retaliation,” analysts at JPMorgan said in a note.

“Stocks were concerned about a prolonged and expanded US campaign towards Assad and that doesn’t look probable.”

Safe-haven assets eased slightly in response, with yields on US 10-year Treasury debt up 2 basis points at 2.84%.

The dollar failed to hold its early gains on the yen and eased to 107.20, though that was still up on last week’s low around 106.62.

Dealers were keeping a wary eye on Japanese politics after a survey showed support for Prime Minister Shinzo Abe had fallen to 26.7%, the lowest since he took office in late 2012. Mr. Abe’s sliding ratings are raising doubts over whether he can win a third ,threeyear term as ruling Liberal Democratic Party leader in a September vote, or whether he might even resign before the party election.

In commodity markets, gold was steady around $ 1,345.60 an ounce, still well short of last week’s peak at $1,365.23.

Oil prices slipped with Brent crude futures off 69 cents at $71.89 a barrel, while US crude fell 54 cents to $66.85.

Looking ahead, the US earnings season swings into high gear this week, the US was to report retail sales later on Monday and there are around 15 Federal Reserve speakers in the diary for the week. —