Global stocks sink, notably tech, as Treasury yields jump | Malay Mail
NEW YORK, Jan 19 ― Benchmark US Treasury yields jumped to two-year highs and equity markets tumbled yesterday, with the Nasdaq falling more than 2 per cent, as traders braced for the Federal Reserve to tackle fast-rising inflation by tightening monetary policy. The dollar hit a six-day high as...
The dollar hit a six-day high as Treasury yields surged, while inflation fears were bolstered as oil prices rose to their highest since 2014 on possible supply disruptions after attacks in the Gulf increased an already tight outlook.The two-, three- and five-year part of the yield curve will bear the brunt of expected Fed policy, said Tom di Galoma, a managing director at Seaport Global Holdings in Greenwich, Connecticut.
Yields have jumped since minutes from the Fed's December policy meeting showed it may raise rates sooner than expected and begin reducing its asset holdings to slow inflation and address a tight labour market.Securities will continue to revalue as the market anticipates rate hikes, said Michael O'Rourke, chief market strategist at JonesTrading in Stamford, Connecticut.Read more: Malay Mail »
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With Omicron, global economy spots chance to push past Covid | Malay MailNEW YORK, Jan 18 — Governments worldwide are easing quarantine rules, reviewing coronavirus curbs and dialling back pandemic-era emergency support as they bid to launch their economies back into some version of normality. The moves, motivated by the lower severity of the Omicron variant and the...
Global bonds under siege as Treasuries selloff spreads(Jan 17): Global bond markets came under pressure Monday after Treasuries sold off on Friday on increased speculation of a March rate hike by the Federal Reserve.Germany’s 10-year borrowing rates jumped to within three basis points of turning positive for the first time in almost three years, while Australia’s benchmark yield climbed seven basis points to 1.92%. Treasury futures retreated after 10-year yields saw their highest close Friday since January 2020.Yields are rising as investors increasingly fret that elevated
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Oil hits seven-year highs as global unrest stokes supply jittersNEW YORK (Jan 19): Oil prices on Tuesday (Jan 18) climbed to their highest since 2014 as investors worried about global political tensions involving major producers such as the United Arab Emirates (UAE) and Russia that could exacerbate the already tight supply outlook.The risk added a premium to prices during the session. Brent crude futures rose US$1.03, or 1.2%, to settle at US$87.51 (about RM366.71) a barrel. US West Texas Intermediate crude futures ended US$1.61, or 1.9%, higher at US$85.43 a barrel.Both
Dollar fails to catch a lift from higher yields, Bank of Japan in focus | Malay MailNEW YORK, Jan 18 ― The Bank of Japan (BoJ) will probably slightly revise up its inflation forecast in a quarterly outlook report after the meeting, due to rising energy costs, Reuters reported last week citing sources, though the new projection will still be below the BoJ's 2 per cent target. The...
Higher US yields support dollar; yen slips after BoJ meeting | Malay MailLONDON, Jan 18 — A jump in US Treasury yields pushed the dollar index to a six-day high today, while Japan’s yen fell after the Bank of Japan said it would stick to its ultra-loose monetary policy. The US Federal Reserve meets next week. It is expected to raise rates in March, for the first...
Telegram channel for the latest updates.Telegram channel for the latest updates.A (Jan 17): Global bond markets came under pressure Monday after Treasuries sold off on Friday on increased speculation of a March rate hike by the Federal Reserve..
NEW YORK, Jan 19 ― Benchmark US Treasury yields jumped to two-year highs and equity markets tumbled yesterday, with the Nasdaq falling more than 2 per cent, as traders braced for the Federal Reserve to tackle fast-rising inflation by tightening monetary policy. The dollar hit a six-day high as Treasury yields surged, while inflation fears were bolstered as oil prices rose to their highest since 2014 on possible supply disruptions after attacks in the Gulf increased an already tight outlook. The moves, motivated by the lower severity of the Omicron variant and the need to keep workers in work and the global recovery on track, have generated a whiff of optimism that has lifted oil and stock prices. The jump in Treasury yields slammed US and European technology stocks, while a drop in Goldman Sachs' stock led declines among US banks after it missed quarterly earnings as the Fed slowed its asset purchases in November. Treasury futures retreated after 10-year yields saw their highest close Friday since January 2020. Two-year Treasury yields, which track short-term interest rate expectations, rose above 1 per cent for the first time since February 2020 as traders priced in a more hawkish Fed before the US central bank's policy meeting next week. However, they add, much depends on how authorities manage ongoing vaccination rollouts and balance other health measures still needed, while persuading their citizens not to throw caution to the wind. The two-, three- and five-year part of the yield curve will bear the brunt of expected Fed policy, said Tom di Galoma, a managing director at Seaport Global Holdings in Greenwich, Connecticut.
“The front end of the market is still way underpriced for Fed tightenings. That lockdown was already something of a rarity, with most western countries well past that stage and focussed on how to safely open up further. Chief Executive Officer Jamie Dimon said Friday the central bank could raise rates as many as seven times, while billionaire investor Bill Ackman argued for a bigger-than-expected 50 basis points move in March. The two-year note could be 1.5 per cent by March,” he said. Britain and Israel have eased requirements for follow-up PCR tests after a lateral flow result as Omicron’s soaring infection rates overload laboratories. The yield on two-year Treasuries rose 8. “Central bankers may very well kill inflation by these actions, but they also may kill off the economy in the process in a highly interest rate sensitive world.4 basis points to 1. Omicron’s ability to rifle quickly through a population without causing a proportionate rise in hospitalisations and deaths even prompted Spain’s prime minister to suggest it be treated akin to an endemic illness like flu.
051 per cent and on 10-year Treasury notes they climbed 10.2 basis points to 1. “What we are seeing is an economy that functions right through these waves of Covid,” US Federal Reserve Chairman Jerome Powell said last week. Japan’s 10-year yield was steady at 0.874 per cent, a yield last seen that high in early January 2020. Yields have jumped since minutes from the Fed's December policy meeting showed it may raise rates sooner than expected and begin reducing its asset holdings to slow inflation and address a tight labour market.” Such a scenario would facilitate the Fed’s full-on turn towards normalising policy this year with as many as three interest rate hikes. Information technology was the biggest percentage declining sector on Wall Street, losing 2. Traders are waiting to hear from the Bank of Japan this week following a report of a debate on future policy.
48 per cent, with interest rate-sensitive financials the second biggest, down 2. “It (Omicron) is proving very contagious but less deadly, so economies will live with it,” one European Central Bank policymaker told Reuters, adding the bank’s baseline scenario assumed a “continued resolution of the health crisis in 2022”.27 per cent. Tech stocks also weighed the most in Europe, falling 2. If that upbeat outlook materialises, governments would also be able to start winding back the emergency fiscal support which, according to the International Monetary Fund, led to the largest one-year surge in global debt since World War II.77%.2 per cent, as European shares fell to their lowest level in more than a week. The pan-European STOXX 600 index fell as much as 1.9 per cent this year, while underscoring uncertainty posed by the coronavirus.
44 per cent before paring some losses to close down 0. The expectations for a March hike are hurting short-dated bonds more, with the spread between two- and 10-year Treasury yields shrinking to 81 basis points on Friday, within 10 basis points of their tightest since December 2020.97 per cent. Keep on vaccinating The rosy economic picture is also predicated on vaccination campaigns at sufficient levels to limit serious illness. Securities will continue to revalue as the market anticipates rate hikes, said Michael O'Rourke, chief market strategist at JonesTrading in Stamford, Connecticut. “We still have a bit of a ways to go to prepare for three rate hikes or four rate hikes. Dutch Covid-19 hospitalisations, for instance, while off all-time pandemic peaks around 2,000, remain above 900. Subscribe to Mid-day email alert We deliver news to your inbox daily. We haven't priced that in,” he said.
On Wall Street, the Dow Jones Industrial Average slid 1. Another fly in the ointment for any early return to normal may prove to be China’s resolve to pursue a strict “Covid-zero” strategy likely to lead to shutdowns hitting supply chains and therefore its trade partners.51 per cent, the S&P 500 fell 1.84 per cent and the Nasdaq Composite slipped 2. Lawrence Young, Professor of Molecular Oncology, University of Warwick, said US and Japanese studies showing that more than 30 per cent of cases remain highly infectious after five days suggest moves to relax quarantine rules could backfire.60 per cent to close almost 10 per cent below its record closing high on November 19, which would confirm a correction. MSCI's all-country world index closed down 1..
57 per cent as tech stocks dropped in Asia overnight despite China easing policy again. Investors are increasingly pricing in as many as four Fed rate hikes this year, with the first seen coming in March, and one from the European Central Bank. based on the need to get people back to work,” he said. Big market declines often occur in years following outsized gains on Wall Street, with nine sell-offs starting in the first quarter that averaged 10.9 per cent since World War Two, said Sam Stovall, chief investment strategist at CFRA Research.. However, “history is a great guide, but it's never gospel,” he said.
Oil was the only positive sector on Wall Street as Brent crude prices hit US$88 (RM368) a barrel after Yemen's Houthi group attacked the United Arab Emirates, escalating hostilities between the Iran-aligned group and a Saudi Arabian-led coalition. Returning people after five days risks highly infectious people returning to work or school. Brent crude futures rose US$1.03 to settle at US$87. “There’s a big sense that we’re coming out of all of this,” said Young.51 a barrel. US crude futures settled up US$1.” — Reuters You May Also Like.
61 at US$85.43 a barrel. Gold prices fell. US gold futures settled down 0.2 per cent at US$1,812.
40 an ounce. Japan's yen initially fell after the Bank of Japan said it would stick to its ultra-loose monetary policy, despite hopes the economy is finally kicking clear of deflation. The yen was last down 0.01 per cent at US$114.5900.
The dollar index, which tracks the greenback versus a basket of six currencies, rose 0.523 per cent to 95.749 and the euro was last down 0.74 per cent, at US$1.1323.
Russia's rouble, highly volatile recently, firmed 1.18 per cent to 76.9395 a dollar after reports the West was no longer considering cutting Russian banks off from the Swift global payments system and was instead eyeing sanctions on banks. ― Reuters You May Also Like .