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Yields and oil prices fall, while stocks bounce Reuters

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© Reuters. FILEPHOTO: An electronic board displaying the Japan Nikkei Index outside a securities company in Tokyo, Japan, on March 7, 2022, during the outbreak of coronavirus disease (COVID-19) by a woman wearing a protective mask. I see. REUTERS / Kim Kyung -Hoon

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By Sinéad Carew

New York (Reuters)-Wall Street stocks rebounded on Tuesday, lowering US Treasury yields, but oil prices fell amid concerns about inflation and slowing global economic growth.

Yields on US Treasuries have fallen from highs over three years to less than 3% as the market reassessed the inflation outlook the day before the US Consumer Price Index (CPI) data was released, yielding benchmark 10-year bonds. Has risen.

Oil futures fell below $ 100 a barrel in two weeks to the lowest level as demand outlooks became uncertain due to the blockade of the coronavirus in China and growing concerns about a recession.

Markets are volatile across asset classes, coupled with rising inflation and concerns that monetary tightening aimed at slowing inflation could slow global economic growth.

Investors sought more tightening as central banks in the US, UK and Australia raised interest rates last week and policymakers fought soaring inflation. [.N]

In contrast to Monday’s fierce sellout, S & P remained strong after turning into the red for about two hours. Technology, the market’s largest growth sector, drove the rise as investors responded to lower bond yields.

Samir Samana, Senior Global Market Strategist, said: Wells Fargo (NYSE 🙂 St. Louis Investment Institute.

It increased by 14.43 points (0.04%) to 32,260.13, increased by 26.46 points (0.66%) to 4,017.7, and increased by 183.51 points (1.58%) to 11,806.75.

The Pan-European Index rose 0.68% and MSCI’s global share price rose 0.31%.

Matthew Misskin, co-chief investment strategist at John Hancock Investment Management, was reassured by policy makers, including Governor Loretta Mester of the Federal Reserve Bank of Cleveland. “.”

“They were so hawkish that the market wants to sniff it out. Emotionally, many are looking for surrender. The points are still completely connected. No, “he said.

The US dollar was volatile on Tuesday as it remained high for nearly 20 years ahead of a major reading on inflation that could provide insights into the Fed’s policy path.

The rise was 0.203% and the euro fell 0.23% to $ 1.0531. The yen fell 0.09% to $ 130.38 per dollar, while Sterling finally traded at $ 1.2322, down 0.07% on the day.

Oil prices are in volatile trade as markets balance imminent European Union sanctions on Russia’s oil with demand concerns associated with the blockade of the coronavirus in China, the stronger dollar and increased risk of recession. It has fallen. [O/R]

US crude oil recently fell 3.41% to $ 99.57 a barrel and fell 3.44% to $ 102.30 that day.

Wells Fargo’s Samana said, “At these levels, there will probably be demand disruptions and sticker shocks. The other part is what’s happening in China. The longer it lasts, the more demanding the inventory levels will be. That puts pressure on me. ”

Earlier data showed that China’s export growth slowed to its weakest in almost two years as central banks promised to step up support for the slowdown.

Benchmark 10-year bonds rose 26/32 in price from 3.079% on Monday to 2.9771%.

It fell 0.5% per ounce to $ 1,844.31. Elsewhere, it rose 5% after falling to its lowest level since July 2021. The rise on Tuesday recovered some losses from the 11.8% plunge on Monday.

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