All Things Newz – Get Shopping Hints – Essential Tips from

Stock Rally Faltering Amid Higher Treasury Yields: Markets Wrap


Stocks in Asia look set for a soft start on Tuesday after a global bounce from a bear market stalled in the US amid a climb in crude oil prices and Treasury yields.

Article content

(Bloomberg) — Stocks in Asia look set for a soft start on Tuesday after a global bounce from a bear market stalled in the US amid a climb in crude oil prices and Treasury yields. 

Advertisement 2

Article content

Futures fell for Japan and Hong Kong while Australia’s were flat. US contracts fluctuated after the S&P 500 and tech-heavy Nasdaq 100 posted small losses. Periodic institutional portfolio rebalancing is also affecting trading flows. 

China’s bourse has become a bright spot in an otherwise dour backdrop. The CSI 300 is up more than 5% this quarter, compared with a 14% drop in global shares. Central bank Governor Yi Gang vowed to maintain supportive monetary policy to boost the economy’s recovery from Covid and other stresses.

Treasuries fell after weak demand at auctions. The 10-year yield climbed back to around 3.2%. The dollar was little changed. Crude rose toward $110 a barrel — Libya and Ecuador flagged potential output cuts on political unrest.

Advertisement 3

Article content

Rallies in risk assets have proved fleeting as higher borrowing costs to fight inflation slows economic activity in a slew of nations. Some analysts argue still-bullish earnings estimates are next in line for a reality check.

“This is the risk in full play; we are living through a downside adjustment,” Chris Iggo, chief investment officer of core investments at AXA Investment Managers, wrote in a note. “Covid era valuations — boosted by excess liquidity — have been obliterated, higher bond yields are pressuring equity valuations and there is a risk that the earnings cycle is about to turn down.”  

In the Bavarian Alps, Russia’s war in Ukraine and limiting its profits from rising energy prices have been among the main topics of discussion at a Group of Seven summit.

Advertisement 4

Article content

G-7 leaders are set to instruct ministers to explore implementing a price cap on Russian gas. The leaders are also expected to mention a mechanism to cap prices on Russian oil in the final communique.

What to watch this week:

  • San Francisco Fed President Mary Daly is interviewed by LinkedIn’s chief economist, Tuesday
  • US GDP, Wednesday
  • ECB President Christine Lagarde, Federal Reserve Chair Jerome Powell, BOE Governor Andrew Bailey and Cleveland Fed President Loretta Mester due to speak at ECB event, Wednesday
  • St. Louis Fed President James Bullard speaks, Wednesday
  • China PMI, Thursday
  • US personal income, PCE deflator, initial jobless claims, Thursday
  • Eurozone CPI, Friday
  • US construction spending, ISM Manufacturing, Friday

Advertisement 5

Article content

Some of the main moves in markets:


  • S&P 500 futures rose 0.1% as of 7:16 a.m. in Tokyo. The S&P 500 fell 0.3%
  • Nasdaq 100 futures rose 0.2%. The Nasdaq 100 fell 0.8%
  • Nikkei 225 futures fell 0.1%
  • Australia’s S&P/ASX 200 Index futures were flat
  • Hang Seng Index futures fell 0.8%


  • The Bloomberg Dollar Spot Index was little changed
  • The euro was at $1.0584
  • The Japanese yen traded at 135.40 per dollar
  • The offshore yuan was at 6.6905 per dollar


  • The yield on 10-year Treasuries advanced seven basis points to 3.20%


  • West Texas Intermediate crude rose 0.3% to $109.92 a barrel
  • Gold was at $1,822.45 an ounce



Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.


Source link

Related posts

U.S. shifts peak-hour flight approvals to Spirit Airlines at Newark

3M to exit Neoplast, Neobun brands in Southeast Asia

Biden disputes Saudi account of Khashoggi murder discussion