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World Shares Mixed on Bond Sell-Off 10/02 04:48
Global stocks were mixed and European shares edged higher on Friday after a
global bond sell-off deepened and ahead of a U.S. monthly jobs report due later
in the day.
HONG KONG (AP) -- Global stocks were mixed and European shares edged higher
on Friday after a global bond sell-off deepened and ahead of a U.S. monthly
jobs report due later in the day.
Oil prices declined even as the U.S. sent another aircraft carrier and more
troops to the Middle East, and as President Donald Trump threatened more
possible escalations against Iran.
In early European trading, Britain's FTSE 100 climbed 0.5% to 10,485.00.
France's CAC 40 rose 0.6% to 7,883.49, while Germany's DAX was up 0.8% to
25,129.78. That came a day after Europe's benchmark stock indexes fell sharply
as government bond yields shot up.
In Asia, Japan's Nikkei 225 fell 0.9% to 68,309.46. South Korea's Kospi
added 0.5% to 7,003.74. Hong Kong's Hang Seng lost 2.6% to 23,972.29, hitting
the lowest level since July. Australia's S&P/ASX 200 gained 0.8% to 8,682.10.
Taiwan's Taiex advanced 0.3%.
Markets in mainland China were closed for a holiday.
U.S. futures edged up after U.S. Treasury yields held steadier early Friday.
In the bond market, the yield on the 10-year U.S. Treasury was at around
5.24%, after it reached 5.34% on Thursday, the highest since 2002. It crossed
the 5% mark last month, as inflationary pressure from the global energy shock
driven by the Iran war and rising U.S. government debt pushed investors to
demand higher returns.
The 5% level on the U.S. 10-year Treasury yield has been an "important
psychological threshold" for investors, David Clewell, a portfolio manager at
T. Rowe Price, said in a commentary this week.
Factoring in the U.S.'s resilient economic growth, there is a "credible"
likelihood that the U.S. 10-year Treasury yield can rise toward 5.5% to 6%,
Clewell suggested. Ballooning bond yields have been putting downward pressure
on stock markets, as higher borrowing costs can undercut stock returns.
On Wall Street, the S&P 500 added 0.2%, the Dow Jones Industrial Average
edged up less than 0.1%, and the Nasdaq composite rose less than 0.1%.
Investors and traders are monitoring closely the U.S. monthly jobs report
for September to be released on Friday, as the data could provide more insight
into the likelihood of an October interest rate hike by the Federal Reserve,
after the Fed raised rates in September for the first time in three years.
Oil prices declined early Friday as uncertainties surrounding the prospect
of a de-escalation between the U.S. and Iran dragged on.
The U.S. military is deploying thousands of troops aboard a group of ships,
including a third aircraft carrier, to the Middle East, according to a U.S.
official on Thursday, after Trump on Wednesday threatened to "blow them up" or
make a deal, referring to Iran, in an exchange with reporters.
Brent crude, the international standard, lost 2.3% to below $100 a barrel,
at $99.95, after advancing on Thursday. That's still well above the
approximately $72 per barrel level in late February before the war.
The U.S. dollar fell to 157.63 Japanese yen from 158.09 yen. The euro was
trading at $1.1255, up from $1.1244.
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