Stocks, yields rise as traders balance China, oil supply
European stocks rebounded and government bond yields rose again as oil prices firmed, despite smaller rate cuts by China than investors had expected, with hopes remaining for further stimulus.
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Posted 8/21/2023, 9:36:00 AM
reuters.com
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European stock markets rise as German producer prices drop, China's rate cut disappoints, and the UK housing market slumps; oil prices rebound on tight supplies and expectations of lower output.
Oil prices rose in Asian trade, despite a disappointing interest rate cut from China, due to the prospect of tighter supplies supporting the outlook.
Treasury yields reach new decade highs in Asia as traders become concerned about the duration of elevated interest rates, causing a dampening effect on stocks, particularly in China, even as some markets attempt to rebound.
European stock markets were higher, with technology stocks leading the pack, following gains in Asian markets and a rebound in U.S. stock futures, while bond yields continue to rise. French game publisher Ubisoft Entertainment also saw a 6% rise after Microsoft submitted a new deal for its takeover of Activision Blizzard.
Asian stock markets rebounded from an eight-day losing streak, supported by a recovery in Chinese shares, while benchmark Treasury yields reached a 16-year high on concerns of sustained high interest rates.
The recent spike in U.S. bond yields is not driven by inflation expectations but by economic resilience and high bond supply, according to bond fund managers, with factors such as the Bank of Japan allowing yields to rise and an increase in the supply of U.S. government bonds playing a larger role.
Government bonds rallied as yields on longer-dated Treasurys retreated, while stock indexes closed mixed for the week and Bitcoin declined, with oil prices pushing higher and overseas stocks declining.
European markets climbed on Thursday as a pullback in U.S. bond yields eased global borrowing costs, with tech stocks leading gains, while investors awaited comments from U.S. Federal Reserve Chairman Jerome Powell for insight into the path of interest rates.
Stocks are giving back their gains as bond yields rise due to fears that the Federal Reserve will keep interest rates high for a longer period of time.
European shares traded higher as traders considered the possibility of higher interest rates from the U.S. Federal Reserve and awaited upcoming economic data, while U.S. stocks opened higher and Asian stocks rallied due to a stock market policy change in China.
European stocks rose for a second day as investors awaited economic figures that could provide insights into global central bank policies, with miners and real estate leading advances in the Stoxx Europe 600 index and NN Group NV jumping more than 10% after beating analysts' expectations, while futures on the S&P 500 and Nasdaq 100 were fluctuating, suggesting US stocks may struggle to maintain Monday's gains.
Most Asian stocks rose slightly as markets awaited key economic readings and a rally in Chinese shares extended amid speculation over more stimulus measures.
The euro rose against the dollar and euro zone bond yields fell after US unemployment rate increased, suggesting the Federal Reserve may be done with interest rate hikes.
U.S. Treasury yields rose as investors assessed the impact of recent economic data and speculated on the future of Federal Reserve monetary policy.
U.S. stock futures decline as bond yields rise despite weak economic news from China and Europe.
European markets opened higher on Friday, looking to rebound after seven consecutive sessions of losses, as investors assess weak Chinese data, higher government bond yields, and renewed inflationary concerns in the U.S. despite German inflation easing to 6.4% in August.
Most stock markets in the Gulf rose in response to a rise in oil prices, except for the Saudi index which closed lower; however, the International Monetary Fund predicts a further slowdown in Saudi Arabia's GDP growth due to the extension of oil production cuts.
Asian stock markets rose slightly as comments from central banks in China and Japan interrupted the dollar's rally, while investors awaited U.S. inflation data that could impact future Federal Reserve rate hikes.
Euro zone government bond yields were mixed while money markets increased their bets on another rate hike by the European Central Bank, with investors split on whether the ECB will raise interest rates and money markets pricing in a higher chance of an ECB move by year-end.
Oil prices rebounded on Thursday as the market focuses on tighter crude supply for the rest of 2023 and strong demand, with fears of deficient supplies underpinning prices.
Euro zone bonds and stocks rally as traders maintain their bets on the European Central Bank cutting interest rates next year amid concerns over economic growth.
Oil prices rose on Friday as China's better-than-expected economic data and record oil consumption supported the belief that demand in the country will continue to surge.
European and Asian stocks rally on hopes of central banks ending rate rises and positive data indicating a potential rebound in China's economy.
Treasury yields rise and stocks fall as traders anticipate longer-lasting higher rates to prevent inflation, while Brent oil briefly surpasses $95 a barrel; the Federal Reserve's decision on interest rates is eagerly awaited by investors.
European markets rise as global investors await the U.S. Federal Reserve's monetary policy decision; retail stocks lead gains while oil and gas dip slightly, and U.K. inflation falls below expectations in August.