Stocks Pare Losses, Bonds Hold Post-Powell Decline: Markets Wrap
Added 03-05-21 12:04:02am EST - “(Bloomberg) -- Asian stocks and U.S. futures pared losses Friday as investors digested comments from Federal Reserve Chairman Jerome Powell that fell well short of trying to rein in bond yields. Treasuries held a decline.Stock markets…” - News.yahoo.com
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(Bloomberg) -- Asian stocks and U.S. futures pared losses Friday as investors digested comments from Federal Reserve Chairman Jerome Powell that fell well short of trying to rein in bond yields. Treasuries held a decline.
Stock markets were in the red in South Korea and China, which set a conservative growth target of more than 6% for 2021 that signals more restrained monetary and fiscal policies this year. Japanese equities edged higher. On Thursday, the tech-heavy Nasdaq 100 extended its decline to almost 10% from February’s peak, and the S&P 500 erased nearly all its 2021 gains.
Australian bond yields surged in early trade, tracking a selloff in the U.S. 10-year that lifted the yield curve to its steepest point since 2015. Japan’s benchmark yield dropped as the central bank governor quashed speculation that the trading band for the 10-year might be widened. The U.S. dollar strengthened against nearly all major peers.
Oil prices leapt after the OPEC+ alliance surprised traders with its decision to keep output unchanged. Bitcoin fell with other risk assets.
Powell noted the recent runup in yields without hinting at intervention, saying that he would be “concerned by disorderly conditions.” While some investors view the rates moves as a sign of economic strength, others are growing concerned about rising inflation and the impact of higher yields on elevated stock valuations.
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