European stocks dropped with U.S. futures on Friday as investors mulled reported conflict among policy makers over a stimulus package for the single-currency region, as well as political upheaval in France.

The Stoxx 600 Index turned lower after Bloomberg News reported the European Central Bank is facing a potential rift over how much their emergency bond-purchase program should stay weighted toward weaker countries such as Italy. The euro fluctuated following French President Emmanuel Macron’s decision to name a new prime minister after asking his government to resign.

Contracts on the main U.S. stock gauges slipped after fluctuating earlier in the session. American cash equity and bond markets are shut for Independence Day. The dollar was steady, though still headed for its first weekly drop in a month. Gold drifted just below US$1,800 an ounce.

The friction at the ECB highlights the risk to markets should promised stimulus measures fall short. Investors continue to weigh policy support and upbeat economic data against relentless new outbreaks of the virus. U.S. payrolls figures Thursday fueled optimism of a V-shaped recovery in the world’s biggest economy, even as Florida reported that infections and hospitalizations jumped the most yet, and Houston had a surge in intensive-care patients.

“There’s still a general positive sentiment about how quickly we’re seeing the recovery,” said Chris Gaffney, president of world markets at TIAA Bank. “But we do think you’re going to see the recovery level off, especially if we continue to see higher case numbers on the virus.”

Elsewhere, crude oil dipped but remained on track for a weekly gain.

These are some of the main moves in markets:

Stocks

Futures on the S&P 500 Index decreased 0.6 per cent as of 3:39 p.m. London time.
The Stoxx Europe 600 Index declined 1 per cent.
The MSCI Asia Pacific Index gained 0.9 per cent.
The MSCI Emerging Market Index increased 0.9 per cent.

Currencies

The Bloomberg Dollar Spot Index was little changed.
The euro was little changed at US$1.1241.
The British pound sank 0.1 per cent to US$1.2452.
The onshore yuan was unchanged at 7.066 per dollar.
The Japanese yen was little changed at 107.51 per dollar.

Bonds

Germany’s 10-year yield fell one basis point to -0.43 per cent.
Britain’s 10-year yield gained less than one basis point to 0.19 per cent.
Japan’s 10-year yield sank one basis point to 0.028 per cent.

Commodities

West Texas Intermediate crude declined 1.7 per cent to US$39.94 a barrel.
Brent crude declined 1.6 per cent to US$42.43 a barrel.
Gold was little changed at US$1,775.47 an ounce.