(Bloomberg) — Global bond markets rallied, with the yield on the 10-year U.S. Treasury note falling to 4.8%, amid growing speculation that the recent sell-off in stocks has been excessive. Nasdaq 100 Index futures rose on gains from Microsoft and Alphabet.
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The yield on the 10-year U.S. Treasury note fell 5 basis points to its lowest level in a week, after hitting its highest level since 2007. Europe’s Stoxx600 index fell 0.3%, while the US futures index rose 0.3%. Bitcoin soared above $35,000 and the euro weakened against the dollar as data showed the economies of France and Germany were in decline.
U.S. Treasuries are recovering after some of the market’s most prominent bears warned of an economic slowdown, raising expectations that the decline has gone too far and the Federal Reserve will have to cut interest rates. ing. Wide swings in government debt are spooking investors as the economy’s resilience makes it difficult to know when the Fed will stop raising interest rates. A surge in government issuance and geopolitical tensions are also clouding the outlook.
Oil rose, with Brent crude trading above $90 per barrel. As Hamas hostage release negotiations intensify and French President Emmanuel Macron makes his latest visit to a world leader, calls are growing in Israel to reconsider the scope of its ground invasion of Gaza.
Separately, the potential approval of the first U.S. spot Bitcoin ETF in the coming weeks boosted demand for the token, sending Bitcoin to its highest level since May of last year. Asset managers BlackRock and Fidelity Investments are among the companies vying to offer such products.
In Asia, most Chinese stock indexes rose after China’s sovereign wealth fund bought exchange-traded funds (ETFs) to boost prices. Stock prices in the region were mixed, with Japanese and South Korean markets reversing declines of more than 1% to rise.
Raymond Chen, a fund manager at Zizhou, said the rebound in Chinese stocks “may still be too early to call the bottom, but the authorities will step on the brakes if there appears to be overwhelming downward momentum.” “This shows that they have made it a rule.” Investment asset management.
This week’s main events:
Reserve Bank of Australia Governor Michelle Bullock speaks at the Commonwealth Bank Annual General Meeting in Sydney on Tuesday.
The Paris-based International Energy Agency on Tuesday released its annual World Energy Outlook report
Eurozone S&P Global Services PMI, S&P Global Manufacturing PMI, Tuesday
Eurozone bank lending survey, Tuesday
US S&P World Manufacturing PMI, Tuesday
Microsoft, Alphabet earnings, Tuesday
Australian CPI, Wednesday
Germany IFO Business Environment, Wednesday
Canadian interest rate decision Wednesday
U.S. new home sales Wednesday
IBM, Meta Earnings, Wednesday
European Central Bank interest rate decisions.President Christine Lagarde holds press conference on Thursday
U.S. Wholesale Inventories, GDP, U.S. Durable Goods, New Unemployment Insurance Claims, Pending Home Sales, Thursday
Intel, Amazon earnings, Thursday
China’s industrial profits Friday
Japan Tokyo CPI, Friday
US PCE Deflators, Personal Expenditures and Income, University of Michigan Consumer Sentiment, Friday
ExxonMobil Friday earnings
The main movements in the market are:
stock
As of 9:07 a.m. London time, the Stoxx European 600 was down 0.3%.
S&P 500 futures rose 0.3%
Nasdaq 100 futures rose 0.5%
Dow Jones Industrial Average futures rose 0.2%.
MSCI Asia Pacific Index rose 0.3%
MSCI Emerging Markets Index rose 0.3%
currency
Bloomberg Dollar Spot Index little changed
The euro fell 0.1% to $1.0655.
The Japanese yen rose 0.2% to 149.45 yen to the dollar.
The offshore yuan was almost unchanged at 7.3159 yuan to the dollar.
The British pound was almost unchanged at $1.2258.
cryptocurrency
Bitcoin rises 8% to $34,073.5
Ether rose 6.1% to $1,812.86
bond
The 10-year Treasury yield fell 4 basis points to 4.81%.
Germany’s 10-year bond yield fell 8 basis points to 2.79%.
UK 10-year bond yields fell 9 basis points to 4.51%.
merchandise
Brent crude rose 0.8% to $90.53 per barrel
Spot gold rose 0.1% to $1,975.28 an ounce.
This article was produced in partnership with Bloomberg Automation.
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