Saturday, September 30, 2023

US bond yields hit 10-year highs, European stocks rise

European stocks rebounded from six-week lows, and US Treasury yields hit a decade high on Monday in anticipation of a Federal Reserve meeting to be held later this week.

* Mixed signals traded on Wall Street: The Dow Jones Industrial Average fell 121.76 points, or 0.36%, to 34,377.24; The S&P 500 Index rose 9.62 points, or 0.22%, to 4,379.33; and the Nasdaq rose 127.27 points, or 0.96%, to 13,418.46.

* Crude oil futures fell about 0.3% after rising as much as a dollar a barrel, weighed down by a possible rise in interest rates and uncertainty about Chinese demand.

* The pan-European STOXX 600 index ended 0.1% higher after rising as much as 0.9% on the day, recovering from a six-week low on Friday.

On Wednesday, results from Nvidia, an artificial intelligence-linked company, will test stock ratings.

“Wall Street is having a hard time deciding what to do with stocks,” said Edward Moya of OANDA. “Everyone anticipates the impact of rising yields, but it seems tech companies have persevered. Nvidia will be key.”

* The 30-year bond yield hit 4.468%, the highest since April 2011, and the 10-year bond yield hit 4.35%, the highest since November 2007, before the bankruptcy of Lehman Brothers nearly a year later paved the way for the release of The Great Financial Crisis.

“People are getting worried about bond selling and watching what Powell says about interest rate caps,” said Seema Shah of Principal Global Investors.

The week’s main event is the Jackson Hole Fed conference, with markets expecting Fed Chair Jerome Powell to take note of rising yields and recent strong economic data.

* The euro rose 0.2% to $1.0897 after falling 0.88% in a month, while the dollar index, which compares the greenback to a basket of six major currencies, edged as low as 103.32 units.

Spot gold rose 0.2% to $1,892 an ounce.

World Nation News Desk
World Nation News Desk
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