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Equities rise in US futures as bond routs deepen: markets wrap

(Bloomberg)-European equities rose alongside U.S. stock futures on Monday as Russian and Ukrainian negotiators are preparing for new negotiations. Five-year Treasury yields to 2% for the first time. Reached and deepened global bond trading since 2019.

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The Stocks Europe 600 Index surged by more than 1%, led by automakers, following Volkswagen AG’s “confident” outlook. Basic resources and energy stocks have declined as crude oil has declined with natural gas. Technology investor Prosus NV has fallen by more than 10. % After Chinese technology stocks continued to sell amid regulatory headwinds and concerns over Beijing-Russia relations.

The 10-year Treasury yield has risen to its highest level since July 2019, and yields across the euro area have skyrocketed. The Federal Reserve Board on Wednesday is expected to begin a cycle of rate hikes to curb inflation, starting with a move of 25 basis points. Price pressure was already high before conflict and resource-rich Russia’s isolation overturned the flow of goods.

Investors are analyzing diplomatic efforts as Russia continues its war in Ukraine, and there are comments from US officials that Moscow has sought military assistance from China. Retreat of stimulus and rising costs of energy, grains and metals could curb global economic recovery.

Louise Dudley, Portfolio Manager, Global Commodities Equity at Federated Hermès, said: In the short term, as geopolitical uncertainties about Russia’s crude oil continue. “

Nine percent of China’s tech gauges echoed in the region, leaving the Asia-Pacific stock index in the red in the second session. Sector due to Covid’s blockade in Shenzhen, a high-tech hub.

Crude oil fell above $ 105 a barrel. The dollar has fallen and gold has receded. The ruble is stable against the greenback of Moscow trading and the Russian stock market is still closed. Almost half of that forex reserve.

“Stack” feed

The Federal Reserve Board is a draw card among eight members of a group of 20 scheduled by financial authorities this week to assess the economic outlook.

Karen Harris, Global Head of Macro Research at Bain & Company, told Bloomberg Television that the Fed is “really stuck between the real and financial economies.” These rises will come in March. On the other side, we strive not to sting the financial economy. Both roads are deflation and retreat. “

While some countries, such as the United States, are tightening monetary policy, speculation is rising that China will introduce easing measures to mitigate the slowdown, and yuan and Chinese government bond yields have receded.

Meanwhile, senior U.S. and Chinese officials will meet on Monday to discuss Ukraine, a conflict in which Russian missiles could attack a military training facility in western Ukraine near Poland and spill across the Ukrainian border. It raises new concerns.

Here are some important events to watch this week:

  • China’s 1-year medium-term loan facility rate, economic activity data, Tuesday

  • EIA Crude Oil Inventory Report, Wednesday

  • Wednesday FOMC rate decision and Federal Reserve Board Jerome Powell press conference

  • Bank of England interest rate decision, Thursday

  • ECB President Christine Lagarde, Board member Isabel Schnabel, Board member Inhazio Bisco, and Chief Economist Philip Lane speak at a meeting on Thursday

  • Bank of Japan interest rate decision, Friday

For more market news, follow the Markets Live blog.

Some of the major moves in the market:

stock

  • The Stocks Europe 600 rose 1.2% at 9:37 am London time.

  • S & P 500 futures rose 0.6%

  • Nasdaq 100 futures rose 0.3%

  • Dow Jones Industrial Average futures rose 0.8%

  • MSCI Asia Pacific Index fell 1.4%

  • MSCI Emerging Markets Index fell 2.2%

currency

  • Bloomberg Dollar Spot Index has changed little

  • Euro rose 0.4% to $ 1.0960

  • Japanese yen fell 0.5% to 117.84 yen to the dollar

  • The offshore yuan fell 0.3% to 6.3758 per dollar

  • The pound sterling rose 0.1% to $ 1.3051

bond

  • Yields on 10-year government bonds rose 9 basis points to 2.08%

  • Germany’s 10-year yield rose 9 basis points to 0.33%

  • UK 10-year yield rose 9 basis points to 1.58%

merchandise

  • Brent crude fell 3.2% to $ 109.12 a barrel

  • Spot gold fell 1.3% to $ 1,962.76 an ounce

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