The european bags They started in positive territory this Thursday, driven by a decline in Oil prices and lower-than-expected US jobs datawhich led to a decrease in the yields of the Treasury bond of that country, going back from its highest point in 16 years.
Asian stocks also experienced a rebound from its 11-month lowsfollowing the upward trend of Wall Streetalthough Chinese markets remain closed due to the holidays.
In recent weeks, bond yields had been risingas investors reassessed whether the Federal Reserve would keep interest rates high for an extended period if inflation continued to exceed targets and the economy showed resilience.
Thus, the yield on 10-year bonds reached its highest level in 16 years, reaching 4.884%, and then trading around 4.7498%, after a slowdown in bond sales due to a private employment report in the US weaker than expected and a 5% drop in oil prices.
Europe and its actions
The pan-European index STOXX 600 saw an increase of slightly less than 0.1%, while the global measure of MSC sharesI registered an increase of 0.2%, recovering from the previous session in which it hit its lowest since the end of March.
Investors are paying attention to US employment data to evaluate whether bond sales will continue. Later in the day, Initial jobless claims will be released, and nonfarm payrolls and the unemployment rate are expected on Friday.
“The great unknown is:Will yields continue to rise and at what point could they cause significant damage to the economy?“said Baylee Wakefield of Aviva Investors. “If we see more positive signs in non-farm payrolls on Friday, investors could worry less about a potential rate hike towards the end of the year.”
In the currency market, the dollar index remained around 106.83 units, after hitting its high of 107.34 earlier in the week. The euro was trading stable at 1.05035 dollars and the yen was exchanged at 149 units per dollar. On the other hand, oil prices fell by approximately 1.5%, while gold saw a slight decline to $1,819.3.
Source: Ambito
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