Good morning. Welcome to rolling coverage on the global economy, financial markets, euro area and business.
Today, the global market is raging as the surge in government bond yields has caused the bright red waters of Wall Street.
Sovereign bond prices fell across the board yesterday, pushing up bond yields (or interest rates). There has been a remarkable move in the United States, with 10-year government bond yields jumping to 1.5% for the first time in a year.
The sale of bonds suggests that investors expect this year’s economic recovery to boost inflation, with the Biden White House in particular planning a new $ 1.9 trillion stimulus package.
This could allow central banks to tighten monetary policy and end the money-printing stimulus that helped the market recover from the March crash last year.
Technology-centric last night Nasdaq 3.5% plunge-worst day since October- Dow 1.75% slide from Wednesday’s record high.
The Asia Pacific market is sluggish overnight and losses are expected in Europe this morning.The· FTSE 100 The London Best Equity Index is expected to fall by more than 1%.
One of the worries about the sale is that Federal Reserve Board Chairman Jerome Powell spent two days witnessing to Congress this week. Claims that the Federal Reserve Board is not trying to end the stimulus..
But the market is certainly edgy. We’re throwing away high-risk assets and returning to a paradise for savings like the US dollar.
Sold out came after some promising US economic data-unemployment claims fell last week, but durable consumer goods orders increased 3.5% in January. However, it seems to raise concerns about potential interest rate hikes.
Ipek Ozkardeskaya,senior analyst Swiss quotes,Description:
Investors withdrew their holdings of government bonds, like hot potatoes, as all new data pointed to improved economic conditions and demanded higher inflation.
Stocks plummeted along with government bonds. Nasdaq High-tech stocks fell sharply as a result of the massive transition from growth stocks to value stocks, resulting in a loss of 3.52%. Nike, Caterpillar, Johnson & Johnson, and Goldman Sachs were one of the rare stocks that ended the session higher. Apple, Microsoft and Disney fell as Tesla fell by 8%.
So it may be a lively day …
- 12:30 pm Greenwich Mean Time: Deputy Governor of the Bank of England Dave Ramsden: Speech at the Association of Chartered Certified Accountants
- Greenwich Mean Time 1:30 pm: January US Consumer Expenditure Data
- Greenwich Mean Time 3:00 pm: University of Michigan US Consumer Confidence Survey
Markets fall as bond sales spy on investors – Business Live – Business Live | Business
Source link Markets fall as bond sales spy on investors – Business Live – Business Live | Business