Stocks, European Futures Dip as Bond Yields Rise: Markets Wrap

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(Bloomberg) — Stocks edged lower Wednesday amid upward pressure on bond yields as investors await more details on the next leg of U.S. stimulus spending. The dollar extended gains as it wraps up its best quarter in a year.

Banks weighed on Japan’s equity gauge after Mitsubishi UFJ Financial Group Inc. joined the list of firms globally to take a hit from the meltdown at Bill Hwang’s Archegos Capital Management. Chinese shares retreated while Australia’s index outperformed. U.S. equity futures fluctuated after a lower close for the S&P 500 Index, and European contracts fell.

Ten-year Treasury yields advanced again in Asian trading, having touched a 14-month high of 1.77% before subsiding overnight. Gold traded around multi-month lows under $1,700 per ounce. Oil was steady before the April 1 meeting of OPEC and its allies.

© Bloomberg Benchmark U.S. Treasury yield about to lock third straight quarter of increases

Investors are watching the course of the U.S. growth rebound and its possible impact on inflation, amid concerns that a renewed rise in bond yields could hit some stocks. President Joe Biden is poised to unveil a large infrastructure package, and key jobs data are due Friday. The International Monetary Fund will upgrade its forecast for global economic growth next week.

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“It’s a really challenging market right now, very volatile, very rocky,” Terri Spath, Zuma Wealth chief investment officer, said on Bloomberg TV. “Although a lot of the economic data is improving, overseas and in the U.S., we are still in a very fragile place. You need to be cautious at this point because you will have some opportunities to buy at lower levels in the near future.”

A gauge of China’s manufacturing industry picked up in March, suggesting the domestic recovery is gathering pace as economic activity returns to normal and demand strengthens.

Some key events to watch this week:

President Biden is expected to unveil his infrastructure program Wednesday.EIA crude inventory report Wednesday.OPEC+ meets to discuss production levels for May on Thursday.China Caixin PMI due Thursday.U.S. employment report for March on Friday.Good Friday starts the Easter weekend in countries including the U.S., U.K., France, Germany, Australia and Canada.


S&P 500 futures were steady as of 6:56 a.m. in London. The S&P 500 Index dipped 0.3%.Japan’s Topix Index fell 0.8%.Australia’s S&P/ASX 200 Index rose 0.8%.South Korea’s Kospi index dropped 0.1%.Hong Kong’s Hang Seng Index slipped 0.3%.China’s Shanghai Composite Index fell 0.6%.Euro Stoxx 50 futures fell 0.2%.


The yen was at 110.84 per dollar, down 0.4%.The offshore yuan was at 6.5701 per dollar.The Bloomberg Dollar Spot Index was up 0.1%.The euro traded at $1.1708.


The yield on 10-year Treasuries rose about two basis points to 1.73%.Australia’s 10-year bond yield rose one basis point to 1.79%.


West Texas Intermediate crude added 0.6% to $60.93 a barrel.Gold was at $1,683.12 an ounce, falling 0.1%.

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