Get Premium Data for Cyber Monday: Up to 55% Off InvestingProCLAIM SALE

Bond yields climb, stocks dip on shifting ECB views

Published 2019-09-10, 02:06 p/m
© Reuters.  GLOBAL MARKETS-Bond yields climb, stocks dip on shifting ECB views
EUR/USD
-
GBP/USD
-
US500
-
DJI
-
DE40
-
DX
-
IXIC
-
DE30YT=RR
-
US2YT=X
-
US10YT=X
-
US30YT=X
-
STOXX
-
MIWD00000PUS
-
DXY
-
SX7P
-
SPLRCT
-

* German finance minister Scholz hints at big fiscal push

* China factory-gate prices fall sharply in August

* Markets leery before ECB meeting

By Chuck Mikolajczak

NEW YORK, Sept 10 (Reuters) - A gauge of world stock markets fell for the first time in five sessions and bond yields rose on Tuesday, as uncertainty grew over the mix of stimulus the European Central Bank will add to boost a slumping economy this week amid fresh signs global growth was slowing.

Germany's 30-year benchmark bond yield DE30YT=RR briefly broke into positive territory for the first time since Aug. 5, while U.S. Treasury yields US2YT=RR US10YT=RR US30YT=RR climbed to three-week highs. U.S. 10-year notes US10YT=RR last fell 21/32 in price to yield 1.6936%, from 1.622% late on Monday.

The bond moves come as market participants look towards Thursday's ECB meeting, which is widely expected to deliver a cut to interest rates and point to further bond-buying stimulus. concern has been mounting that ECB policymakers and other global central banks are nearing the limits of stimulus policies, especially those with negative interest rates and sub-zero long-term sovereign bond yields.

"The real fulcrum event is the ECB meeting and that will drive Bunds, which in turn, have had a massive influence on Treasuries over the course of the last eight weeks or so," said Guy LeBas, chief fixed income strategist at Janney Montgomery Scott in Philadelphia.

The U.S. Federal Reserve is also widely expected to cut interest rates next week as policymakers attempt to protect the global economy from risks, such as Britain's exit from the European Union.

On Wall Street, stocks were lower, weighed down in part by technology .SPLRCT shares as data from China showing producer prices had their sharpest pace of declines in three years in August renewed global recession worries. Dow Jones Industrial Average .DJI fell 6.14 points, or 0.02%, to 26,829.37, the S&P 500 .SPX lost 7.05 points, or 0.24%, to 2,971.38 and the Nasdaq Composite .IXIC dropped 21.41 points, or 0.26%, to 8,066.03.

European shares edged higher, as the rise in bond yields helped boost bank shares .SX7P by more than 2%, putting them on track for a fifth day of gains. The bank index is up nearly 9% over that span, its best five-day performance since April 2017.

The pan-European STOXX 600 index .STOXX rose 0.10%, while MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.15%.

Germany's DAX rose after Finance Minister Olaf Scholz said the country was ready to inject "many, many billions of euros" into the economy to counter any economic downturn. export-heavy German index was also aided by a Reuters report that Bank of Japan policymakers are now more open to discussing the possibility of expanding stimulus at their Sept. 18-19 board meeting due to the broadening fallout of the U.S.-China trade war. currencies, the dollar strengthened but held in a tight range ahead of the ECB meeting, while sterling steadied as investors looked for clarity on the Brexit situation as several British lawmakers launched a new group on Tuesday to bolster efforts to secure a deal to leave the European Union. dollar index .DXY rose 0.09%, with the euro EUR= down 0.05% to $1.104.

Sterling GBP= was last trading at $1.2342, down 0.02% on the day.

https://tmsnrt.rs/2A8XP5y Global assets in 2019

http://tmsnrt.rs/2jvdmXl Global currencies vs. dollar

http://tmsnrt.rs/2egbfVh MSCI All Country Wolrd Index Market Cap

http://tmsnrt.rs/2EmTD6j

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.