Rising commodity prices and rising inflationary pressures in the United States have led to global stock sales losing the longest in two months, raising interest rates and betting on higher bond yields.
Shares of the continent added 0.4 percent to the STOXX 600 index on Tuesday after a limited equity market recovery in European early trade.
London’s FTSE 100 led the way, with data showing that Britain’s epidemic-hit economy grew stronger than expected in March.
The broader MSCI index of Asia-Pacific shares outside Japan fell 0.9 percent, hitting its lowest since March 26.
After rising to a new record high at the start of the week, MSCI’s share wages worldwide fell 0.2 percent, the third consecutive day of losses since then, the longest running trend since March 4th.
Investors’ focus is locked on the U.S. Department of Labor’s U.S. Consumer Price Index report released at 12:30 GMT, with analysts expecting a 3.6 percent rise in inflation in a year boosted by last April’s lows.
US Treasury yields are stuck in a tight range. Benchmark yields in 10-year Treasuries fell to 1.13030 percent, lower than the recent peaks of late March levels and far from the 1.9 percent level before the coronavirus epidemic in early 2020.
The yield of Eurozone bonds, which held below the recent high on Tuesday, touched on Tuesday. Germany’s ten-year yield fell 1 basis point to -0.17 percent on Tuesday after hitting a record high of -21.122 percent since March 2020.
Analysts say inflation fears and some investors have cut their exposure to excessive recessions or lagging stocks or sectors.
“It’s a battle of two narratives: one of reflection and the roaring 20s, caused by high levels of development by financial institutions; Kiran Ganesh, Head of Multi-Assets, UBS Global Wealth Management, London; Kiran Ganesh, Head of Multi-Assets, London; Kiran Ganesh, Head of Multi-Assets, London; Kiran Ganesh, Head, UBS Global Wealth Management, London. “These two details are contradictory and at the same time investors remember.”
Japan’s Nikkei fell 1.9 percent from its first profit, while Taiwan’s benchmark index fell to an all-time high of 1 percent in February on fears that it would raise its COVID-19 warning level in the coming days, closing business stores as the infection spreads. -In the required items.
The S&P 500’s e-mini futures are down 0.2 percent, while technology-heavy Nasdaq futures are down 0.5 percent.
Analysts, however, are skeptical that the broader equity shutdown will expand further into the world of simplified regulatory policies and the financial sector.
“Despite the intensity of the move, we found limited panic in our client conversations, with many (especially) using vulnerabilities in value-focused sectors such as banking, power and insurance as opportunity to buy dips,” wrote JPMorgan analysts in a note.
Even after the futures pointed to another negative upside for Wall Street, the equity route has just helped flow any safe haven greenbacks.
Alvin T. Tan, head of Asia FX strategy at RBC Capital Markets, said: “What is unusual about the last two days is that equity-market Angst has not been able to provide a significant lift to the US dollar.
The dollar hit a two-and-a-half-month low against its main counterpart, as traders bet that the Federal Reserve would stick to its simple policy settings before expecting the U.S. to see sharp annual growth in the U.S. before the release of consumer price index data. Inflation
The US Federal Reserve expects high inflation although officials have pointed to transient material and base effects for the temporary rise.
The dollar index, which measures the greenback against six currencies, was flat at 90.211.
Currencies from large natural resource suppliers such as Canada have been encouraged by rising commodity prices.
Lunity C was not too far from the 3.5-year high of 20 1.2078.
Another proxy for commodity prices, the Australian dollar, moved away from its ten-week high on Monday and reached 7 0.7811.
Oil prices were higher, with US crude up one percent to $ 65.94. Brent crude added 0.9 percent to $ 69.20 a barrel.
Copper prices rose and not too far from the record high hit earlier this week, with the London Metal Exchange’s three-month copper rising 1.1 percent to, 10,579 per tonne. Spot gold was down 0.2 percent at 8 1,832 an ounce.
In cryptocurrency, Ether reached a fresh record high on Monday and last, at 4,315.41. The value of the second-largest digital token has risen more than 5.5 times so far this year.