© Reuters. FILEPHOTO: A man holding an umbrella looks at an electronic stock price bulletin board outside a securities company in Tokyo April 7, 2015. REUTERS / Issei Kato
New York (Reuters)-Wall Street closed volatile trading days on Monday, with investors preparing for the widely expected Fed rate hike, resulting in a benchmark yield of over 3% for the U.S. Treasury. rice field.
All three major US stock indexes fluctuated between the positive and negative territories throughout the session, reaching their highest levels in more than three years.
The last-minute rally on Wall Street was the worst January-April since 1932, as market participants settled for signs of a hawkish rise from the Fed at the end of Wednesday’s monetary policy meeting. Came shortly after the percentage decline.
Robert Public, Senior Portfolio Manager at Dakotawels in Fairfield, Connecticut, said:
“It’s becoming more reminiscent of the early ’70s,” Pavlic added. All that is required is Richard Nixon to come out of the ground. “
The Institute for Supply Management reports that US factory activity has lost momentum and its Purchase Manager Index (PMI) is well below consensus.
This followed a PMI report from China showing that factory activity has shrunk for the second straight month as the extensive COVID-19 shutdown disrupted production and supply chains.
The S & P 500 rose 84.29 points (0.26%) to 33,061.5, the S & P 500 rose 23.45 points (0.57%) to 4,155.38 and 201.38 points (1.63%) to 12,536.02.
At the lowest point of the day, the S & P 500 fell 1.7%.
Grumpy Chinese factory data plunged European stocks down sharply, but held back losses following a sudden 3% plunge early in the session, but some brokers were triggered by false deals. I called it a “flash crash”.
The Pan-Europe STOXX 600 index lost 1.46% and MSCI’s global equity gauge fell 0.05%.
Emerging market stocks fell 0.47%. MSCI’s widest non-Japanese Asia Pacific stock index fell 0.47%, but fell 0.11%.
Long-term US Treasury yields hit a few years high, with benchmark 10-year yields surpassing the 3% barrier for the first time since December 2018.
Benchmark 10-year bonds fell from 2.885% on Friday to 2.9866% and prices fell 26/32.
30-year bonds fell 58/32 in price from 2.946% on Friday to 3.0487%.
Crude oil prices picked up in the middle of the session as concerns over sluggish demand from China’s harsh factory data were overshadowed by a potential European ban on Russian oil that aroused concerns about tightening supplies. [O/R]
On the day, it was settled at% 105.17 per barrel with a 0.46% increase and 0.41% settled at $ 107.58 per barrel.
The dollar hit a basket-based high for the first time in about 20 years prior to the Fed’s expected rate hike as investors focused on the possibility that the FOMC would adopt a more hawkish stance than expected.
The euro fell 0.36% to $ 1.0503 and rose 0.65%.
The Japanese yen fell 0.27% to $ 130.20 per dollar, while Sterling fell 0.66% to $ 1.2488 that day.
Gold prices plummeted to nearly three months’ lows as the Fed’s outlook for a faster-than-expected interest rate hike pushed up Treasury yields and greenbacks.
It fell 1.8% to $ 1,862.22 an ounce.