- US stocks rise, reflecting rise in Europe
- Treasury yields for 10 years reached the highest level since 2019
- Oil prices return some profits
- Gold dip, progress of Bitcoin
Boston / London, March 22 -US stocks rose again on Tuesday, but investors adjusted their expectations for rate hikes in response to hawkish comments from the US Federal Reserve Board, and the Ministry of Finance Yields have risen and oil has fallen.
The Dow Jones Industrial Average (.DJI) rose 281.07 points (0.81%) to 34,83 4.06. The S & P 500 (.SPX) rose 27.59 points (0.62%) to 4,488.77. The Nasdaq Composite Index (.IXIC) added 87.88 points, or 0.64%, to 13,926.34.
The rise in stocks includes banks that could benefit from high interest rates, such as Morgan Stanley (MS.N) and Wells Fargo (WFC.N), and sports apparel giant Nike (NKE.N). It has been. Quarterly Profit and Revenue Forecast.read more
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Federal Reserve Chair Jerome Powell said on Monday that central banks could move “more aggressively” to raise rates by more than 25 basis points (bps) at a time to combat inflation. Stated.read more
The market has readjusted that it is likely to rise by 50 bps. On Tuesday morning, the money markets were pricing in May with an 80% chance of a 50 bps rise, which fell to 70% around noon.
Around 1345 Greenwich Mean Time, the US Treasury yield for 10 years was 2.366%, the highest since 2019.
“It was easy to wonder if it was possible to hike 75bps and even attend the conference,” Tom Porcelli, chief US economist at RBC Capital Markets, told customers during his speech.
“Both results look incredibly extreme, but when you hear Powell talking about inflation, he seems incredibly worried to us.”
Eurozone government bond yields have also risen, with Germany’s 10-year benchmark yield reaching about 0.515%, the highest level since 2018.
After Powell’s comment, Wall Street fell on Monday, but the European stock market rose. The STOXX 600 rose 0.65%, reaching its monthly high (.STOXX) in recent sessions. London’s FTSE 100 rose 0.54% (.FTSE).
The MSCI World Equity Index, which tracks equities in 50 countries, rose 0.63% on the day (.MIWD00000PUS).
Matthias Scheiber, Global Head of Multi-Asset Portfolio Management at Allspring Global Investments, said the rise in equities could be if investors bought dips, but growth as US 10-year yields approach 2.5%. The stock said it would struggle.
“Yields soared yesterday, but if they continue for a long time today, they could put pressure on stocks …. It will be difficult for stocks to perform well.”
However, JP Morgan said 80% of its clients plan to increase their record-high equity exposure.
In a note to the customer, JP Morgan’s strategist said, “Risks are leaning upwards as they are lightly positioned, weakly sentimental, and likely to mitigate geopolitical risks over time. I’m thinking. “
“Investors believe they need to add risk to areas that have overcome their downsides, such as innovation, technology, biotechnology, EM / China, and small caps. These segments are in a serious global recession. It’s priced inside, but in our view it doesn’t happen. “
The conflict in Ukraine continued to weigh on emotions. US President Joe Biden has issued one of his strongest warnings that Russia is considering the use of chemical weapons.read more
Oil prices lost some ground gained on Monday following news that some European Union member states are considering imposing sanctions on Russian oil-Germany Brock is Russia’s He said he was too dependent on oil and gas to cut himself off.read more
US crude oil fell 1.08% to $ 110.91 per barrel and Brent to $ 115.53, down 0.08% that day.
The US dollar index was stable at 98.38, but the euro rose 0.2% to $ 1.103.read more
Gold prices fell on Tuesday and were pressured by the Fed’s hawkish approach to tackling inflation. Spot gold fell 0.6% to $ 1,923.60 an ounce.read more
Bitcoin, the leading cryptocurrency, rose 4.3% to about $ 42,803, adding to the rise from the daytime low of $ 34,324 on February 24, when Russia invaded Ukraine.read more
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Reported by Lawrence Delevingne in Boston and Elizabeth Howcroft in London.Edited by Jonathan Oatis
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