Connect with us

Business

Stocks slide, bond yields jump as rate hikes take center stage

Published

on

 


The DAX German stock price index chart is pictured on the stock exchange in Frankfurt, Germany, September 5, 2018. REUTERS/Staff/File Photo

Join now for FREE unlimited access to Reuters.com

  • US, European and Asian stocks down
  • JPMorgan’s profitability warning throws the veil
  • Falls follow signals from U.S. Fed policymakers
  • The US dollar stable after 3 days of decline

NEW YORK, Jan 14 (Reuters) – Global stock markets stumbled again on Friday and U.S. Treasury yields rose as cautious investors considered impending U.S. interest rate hikes and uncertainty over their impact on the economy.

A warning from the biggest U.S. bank JPMorgan Chase & Co (JPM.N) that its future profitability could fall below a medium-term target this year has cast a new veil over the U.S. stock market. Read more

By mid-afternoon, the MSCI Global Equity Gauge (.MIWD00000PUS) was down 1%. The pan-European STOXX 600 index (.STOXX) closed down 1.01% and had its worst week since Nov. 26, weighed in part by falling tech stocks.

Join now for FREE unlimited access to Reuters.com

In the United States, the Dow Jones Industrial Average (.DJI) fell 1.15%, the S&P 500 (.SPX) lost 0.86% and the Nasdaq Composite (.IXIC) fell 0.7% .

“We are now entering a period where the Federal Reserve will engage in an unprecedented experiment: raising interest rates to zero and reducing the size of its balance sheet in the same year,” said Nicholas Colas, co-founder of DataTrek. . To research.

“The market is always wondering what results will come from their decisions,” Colas said.

In line with rate hike expectations, yields on benchmark 10-year Treasuries jumped to 1.771%, rebounding to a two-year high of 1.8080% hit earlier this week. Two-year Treasury yields climbed to 0.9710%, a level last seen in February 2020.

European bond yields also rose in choppy trading as investors remained focused on central bank monetary policy tightening, although sharp declines in Germany’s benchmark 10-year yield earlier this week led it to record its biggest weekly decline in 10 weeks.

Meanwhile, the yield on five-year Japanese government bonds hit its highest level since January 2016 and the yen rose after a Reuters report that Bank of Japan policymakers would debate when to could begin a possible rise in interest rates.

Such a move could come before inflation even hits the bank’s 2% target, sources said. Read more

The dollar, which was hit by a three-day selling spree as investors bet that rate hike expectations are already priced into the currency, finally stabilized on Friday.

The dollar index, which measures the greenback against a basket of six currencies, rebounded 0.39% to 95.207, moving further away from a two-month low hit this week.

A rebound in the dollar weighed on the euro, which lost 0.39% to 1.14070.

The British pound also slipped 0.27% to 1.36710, taking a breather after this week’s rally that pushed it to a 2.5-month high.

GDP data on Friday showed Britain’s economy grew faster than expected in November and its output finally rose above its level before the country entered its first COVID-19 lockdown. Read more

Asian stocks fell overnight after Fed Governor Lael Brainard on Thursday became the latest and longest-serving U.S. central banker to signal that the Fed will hike rates in March. Read more

Other Fed officials also showed willingness to raise rates, after data this week showed US consumer prices jumped 7% year-on-year. Read more

Against equity market weakness, oil futures rose again on Friday to be on track for a fourth weekly gain, boosted by supply constraints.

Brent crude futures rose 1.9% to near a two-and-a-half-month high at $86.09 a barrel. U.S. West Texas Intermediate crude jumped 2.2% to $83.95.

Rising bond yields weighed on non-performing gold, with spot gold down 0.28% at $1,817.02 an ounce.

“It is clearly the impact of tighter monetary policy that is being felt in the markets here,” said Guillaume Paillat, multi-asset portfolio manager at Aviva Investors.

Paillat, who expects at least four rate hikes from the Fed this year, said it was “almost done” for the tightening cycle to begin in March.

“What matters in the next few days will be more revenue,” he added. “There is still some room for earnings to surprise on the upside.”

Join now for FREE unlimited access to Reuters.com

Reporting by Koh Gui Qing and Elizabeth Howcroft; edited by Jonathan Oatis

Our standards: The Thomson Reuters Trust Principles.

Sources

1/ https://Google.com/

2/ https://www.reuters.com/markets/europe/global-markets-wrapup-1-2022-01-14/

The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos

ExBUlletin

to request, modification Contact us at Here or [email protected]