TOKYO (Reuters) - Asian shares rose on Wednesday, following gains in European and U.S. markets where bargain hunters bought beaten down stocks, but markets remained vulnerable to the euro zone's debt woes as Spanish yields hit record highs on worries over banks.
Asian shares rose on Wednesday, following gains in European and U.S. markets where bargain hunters bought beaten down stocks, but markets remained vulnerable to the euro zone's debt woes as Spanish yields ...
What started off in familiar fashion, with Asian stocks rising, and Europe hitting multi-month highs and US futures in record territory has stumbled in recent minutes following a continued rush for safety in short-dated German Bunds (the 2Y is now trading at -0.92%) and ongoing selling in the USDJPY, which has pushed Stoxx 600 back to unchanged, and S&P futures to modestly red for the session.
TOKYO: Equity markets in Asia slipped early on Wednesday as a widespread spike in debt yields dented the allure of risky assets, while the euro stood tall after surging on upbeat euro zone inflation data and hopes that Greece will reach a deal with its creditors. Japan's Nikkei lost 0.6 per cent while Australian shares shed 0.5 per cent and South Korea's Kospi dipped 0.1 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan nudged up 0.1 per cent. U.S.
LONDON: European shares hit a 14-year high and the euro fell on Wednesday after the European Central Bank affirmed its loose policy stance and as weak data from China raised prospects of monetary easing there too. A German auction saw 10-year borrowing costs for the euro zone's biggest economy reach a new record low. Firmer commodity prices and merger news also helped hoist European stocks, and US stock index futures pointed to a firmer start on Wall Street, bucking a softer trend in Asia.
Look up the word “bond” in any dictionary and you’ll find two basic elements: first, the amount of money borrowed, or “principal”, to be paid back at a later date; and second, the interest rate, or fee, charged on that borrowed money. Until recently. In Europe today, many borrowers need not worry about the latter. That’s because bonds issued by countries from Germany to Finland are coming with “negative” interest rates, a fact that’s turning the term “fixed income” into somewhat of a misnomer.
LONDON: Global shares and peripheral euro zone bonds jumped on Wednesday as Greece's prime minister signalled he was prepared to accept the bulk of the spending cuts demanded by the rest of the euro zone to keep his country afloat. Alexis Tsipras wrote to the debt-ridden country's international creditors to accept a bailout they had offered over the weekend - though there were caveats which prompted scepticism in some European capitals and kept a lid on market gains.
With bond yields across the rest of the developed world already making new record lows every day, only the US had so far refused to take out all time lows set back in 2012. That finally changed overnight when the 10Y Treasury dropped -9 bps to 1.3784%, while the 30Y declined by the same amount, sliding as low as to 2.1914%.
LONDON: World shares weathered soft readings on Chinese and Japanese manufacturing which served to recharge expectations of more policy stimulus there, though lacklustre euro zone data soured the mood on Thursday. European stock markets initially opened higher, spurred by multi-year highs in Asia, but sluggish euro zone and German purchasing manager data and conflicting numbers from France sent indexes into the red. Stock index futures suggested U.S. markets would maintain the negative trend.
July 4th may be a US national holiday, which means the S&P 500 won't hit a record high on good news and a recorder high on bad, but judging by global trading volumes - already abysmal heading into today - one may as well give the entire world a day off. However, for now, global equities have come off the impressive, and curiously schizophrenic US-data inspired gains of yesterday which sent the DJIA over 17,000 yet which has resulted in an almost unchanged 10Y Treasury print since before the NFP release. Once again bonds and stocks agree to disagree.