Global Markets:
- Asian Stock Markets : Nikkei down 2.95%, Shanghai Composite down 2.07% Hang Seng up 0.22% ASX down 0.19%
- Commodities : Gold at $4,400.15 (-0.46%) Silver at $62.932 (-1.70%), Brent Oil at 91.54 (0.56%), WTI Oil at 84.59 (0.63%)
- Rates : US 10-year yield at 4.684, UK 10-year yield at 5.0860, Germany 10-year yield at 3.2610
News & Data:
- (USD) Industrial Production m/m
- 0.2% to 0.3% expected
Markets Update:
U.S. stock futures were near flat early Wednesday after Wall Street’s major averages fell for a third consecutive session, pressured by a global bond selloff and higher oil prices.
Dow Jones Industrial Average futures rose 46 points, while S&P 500 futures slipped 0.1% and Nasdaq 100 futures declined 0.2%. On Tuesday, the Dow fell 116 points, or 0.2%, the S&P 500 dropped 0.7%, and the Nasdaq Composite declined 1.3%.
Asian markets also came under pressure. South Korea’s Kospi plunged 5.54%, Japan’s Nikkei 225 fell 2.64%, and China’s CSI 300 declined 2.41%. Australia’s S&P/ASX 200 slipped 0.39%, while Hong Kong’s Hang Seng gained 0.2%.
Technology stocks remained under pressure as government bond yields climbed to multi-year highs. The U.S. 30-year Treasury yield reached a 19-year high, while Japan’s 10-year yield hit its highest level in three decades. German and French 30-year bond yields also reached multi-year highs.
Despite rising yields, investors remain relatively optimistic about equities, supported by expectations for continued economic growth and strong corporate earnings.
Attention now turns to the Federal Reserve’s latest meeting minutes, due Wednesday afternoon. Investors will closely examine the divisions within the central bank after three policymakers dissented in favor of a rate hike at July’s meeting.
Retail earnings will also remain in focus, with Target, TJX, Lowe’s and Analog Devices scheduled to report before the market opens.
Upcoming Events:
- 2:30 PM GMT – USD Crude Oil Inventories
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