Stocks Decline as U.S. Yields Rise; Dollar Steady: Markets Wrap
- US Market
- 2 months ago
Stocks in Europe fell along with U.S. equity-index futures as Treasury yields resumed their upward march, rounding out a tough week when a rout in technology shares roiled Asian equity markets. The dollar steadied ahead of the American payrolls report.
Miners led a drop in the Stoxx Europe 600 index as metal prices fell, while gauges of technology and banking companies also slipped. Tech shares led declines in Asia earlier after Bloomberg reported that China infiltrated U.S. companies with hardware hacks. Chinese PC maker Lenovo Group Ltd. dropped as much as 23 percent in Hong Kong. In Europe, Danske Bank A/S headed for the biggest plunge in seven years after Denmark’s regulator said it should hold more capital to prepare for potential fines.
The tech rout is the latest blow for global stocks in a week that saw 10-year U.S. Treasury yields climb to to seven-year highs, reducing demand for riskier assets. Federal Reserve Chairman Jerome Powell stoked the rates surge when he said the central bank could eventually boost its benchmark past the neutral level, after data that underscored the strength of the U.S. economy. Investors’ focus is now squarely on Friday’s monthly U.S. payrolls report for further clues on the policy outlook.
Also coming up Friday is the Reserve Bank of India’s policy decision, with most economists expecting a 25 basis-points hike. Complicating matters amid a slide in the rupee and rising oil prices is a cash crunch in the banking system and a crisis at one of the country’s biggest infrastructure financiers.
Elsewhere, West Texas Intermediate crude oil prices climbed back toward $75 a barrel. Copper led a decline in industrial-metal prices as a rally in raw materials stalled.
Source : Bloomberg