Categories: Market Overview

Stocks Steady With Bond Yields; Brent Near $65

Stocks and bond yields steadied as investors digested the implications of a run-up in borrowing costs that had pushed them to their highest level in a year. Crude oil and copper jumped. European shares opened flat, with miners and tech stocks leading gains in the Stoxx Europe 600 index. S&P 500 futures retreated after the index closed flat. Brent oil briefly jumped above $65 a barrel, a pre-pandemic high, as a cold blast that’s taken out almost 40% of U.S. crude production morphed into a global supply shock. Airbus shares fell as much as 4.6%, after reporting results that were strong but guidance that disappointed.

Concerns are mounting that bond yields near the highest level since the early days of the pandemic could spoil the stock rally. The question of how high borrowing costs can go before they become a drag on corporate profits and the economic recovery is weighing on markets and stoking volatility. Still, with vaccines being rolled out and economic activity picking up around the world, investors continue to bet on share market gains while shifting more into cyclical stocks.

While some recent data highlighted momentum in the U.S. economy, Federal Reserve officials didn’t see the conditions for reducing their massive asset-purchase program being met for “some time” at their January policy meeting, a record of the gathering released Wednesday showed.

Stocks

Futures on the S&P 500 Index decreased 0.3% as of 8:35 a.m. London time.The Stoxx Europe 600 Index climbed 0.1%.The MSCI Asia Pacific Index decreased 0.8%.The MSCI Emerging Market Index declined 0.8%.

Currencies

The Bloomberg Dollar Spot Index dipped 0.1%.The euro gained 0.2% to $1.2057.The British pound jumped 0.3% to $1.3894.The onshore yuan weakened 0.2% to 6.469 per dollar.The Japanese yen strengthened 0.1% to 105.77 per dollar.

Bonds

The yield on 10-year Treasuries rose one basis point to 1.28%.The yield on two-year Treasuries climbed less than one basis point to 0.10%.Germany’s 10-year yield gained one basis point to -0.36%.Japan’s 10-year yield dipped less than one basis point to 0.097%.Britain’s 10-year yield jumped two basis points to 0.592%.

Commodities

West Texas Intermediate crude increased 0.8% to $61.63 a barrel.Brent crude gained 1% to $64.97 a barrel.Gold strengthened 0.3% to $1,781.89 an ounce.

Stocks Steady With Bond Yields; Brent Near $65: Markets Wrap, Bloomberg, Feb 18

The FxPro News Team

This team of professional journalists announces the most interesting and influential articles from the major financial media as a brief summary. All such news may have sufficient potential to affect the course of trading assets.

Share
Published by
The FxPro News Team

Recent Posts

Nasdaq 100 Wave Analysis 23 December 2024

- Nasdaq 100 reversed from strong support level 21000.00 - Likely to rise to resistance…

21 hours ago

USDJPY Wave Analysis 23 December 2024

- USDJPY reversed from key support level 156.35 - Likely to rise to resistance level…

21 hours ago

US indices: has the bullish trend broken?

The recent declines in US indices may have broken the bullish trend, indicated by technical…

1 day ago

Dollar: Slowing Momentum, Same Direction

The dollar has paused its strengthening, as weaker-than-expected inflation data reduces fear of future Fed…

1 day ago

Bitcoin Fell Back to Local Support

Bitcoin finds support near the 50-day moving average, but further declines in the stock market…

1 day ago

EURCHF Wave Analysis 20 December 2024

- EURCHF falling inside minor impulse wave 5 - Likely to fall to support level…

4 days ago

This website uses cookies