Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Global stocks recover on firmer futures, retreat in U.S. yields

Economy Mar 09, 2021 04:30AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Pedestrians and a traffic light stop sign are reflected on a quotation board in Tokyo

By Tom Arnold and Paulina Duran

LONDON/SYDNEY (Reuters) - Global stocks steadied on Tuesday, supported by stronger U.S. equity futures and a decline in U.S. and European bond yields.

In Europe, the Euro STOXX 600 was up 0.1% after a gains on Monday that lifted Germany's index to a record high.

In volatile trading in Asia, the Shanghai Composite index fell 1.8% and was close to a correction from a multi-year high on Feb. 18 amid fears of policy tightening. Japan's Nikkei finished 1% higher as consumer goods companies and property developers gained on expectations they would benefit from an economic recovery.

"We're going through a consolidation phase," said Francois Savary, chief investment officer at Prime Partners. "There is a trend towards a rotation in the market, which is correct as price-to-earnings ratios were excessive. But overall, we think we will have a more balanced equity market than 2020, though volatility is going to stay with us."

NASDAQ futures rose 1.6% and S&P 500 futures 0.8%.

U.S. Treasury Secretary Janet Yellen said on Monday that President Joe Biden's coronavirus aid package would provide enough resources to fuel a "very strong" U.S. economic recovery, and noted "there are tools" to deal with inflation.

Still, investors remain conflicted over whether the stimulus will help global growth rebound faster from the COVID-19 downturn or cause the world's biggest economy to overheat and fuel inflation.

"The chance of our seeing more inflation in the economy is meaningfully increased by the monetary policy actions and the fiscal policy actions that we're seeing around the world," Goldman Sachs (NYSE:GS) Chief Executive Officer David Solomon told a conference in Sydney via webcast.

"There is certainly a reasonable outcome where inflation accelerates more quickly than people are expecting, and that will obviously have an impact on markets and volatility."

The technology sector and other richly valued companies have been highly susceptible to the rising rates.

Australian shares tracked overnight gains on Wall Street with the main S&P/ASX 200 index climbing 0.5% on Tuesday. However, Australian tech stocks slid for the sixth straight session, in line with their U.S. peers.

Similarly, South Korea's KOSPI fell 0.7%, dipping for a fourth straight session, as tech shares sold off.

U.S. economic data pointed to a continued recovery. Wholesale inventories increased in January despite a surge in sales, the Commerce Department said on Monday, suggesting inventory investment could again contribute to growth in the first quarter.

"If rates are grinding higher because people are getting optimistic about what economic growth looks like, that is still supportive for equity prices," said Tom Hainlin, global investment strategist at U.S. Bank Wealth Management's Ascent Private Wealth Group in Minneapolis.

Long-dated euro zone government bond yields dipped ahead of the release at 1000 GMT of final gross domestic data for the bloc. A Reuters poll forecast the region's economy contracted 5% from a year before.

Germany's 10-year government bond yield dropped two basis points to -0.298%.

U.S. 10-year Treasury bond yields also eased, to 1.5472%. Treasury yields have been advancing in recent months as investors price in higher inflation and more upbeat prospects for the U.S. economy.

In foreign exchange markets, the dollar index backed away from a three-and-a-half-month high. In signs risk appetite is returning, sterling, the Aussie, and the Kiwi dollar all edged up. The euro was up 0.1% at $1.185.

Oil prices fell on Tuesday, on receding fears of a supply disruption in Saudi Arabia after an attack on its export facilities.

Brent crude futures for May fell by 0.7% to $67.78 a barrel. U.S. West Texas Intermediate (WTI) crude for April slipped by 0.8% to $65.53. [O/R]

Spot gold added 0.7% to $1,692.21 an ounce.

Global stocks recover on firmer futures, retreat in U.S. yields
 

Related Articles

Dow Futures Move Higher Following Public Holiday
Dow Futures Move Higher Following Public Holiday By Investing.com - Jul 04, 2022 8

By Oliver Gray  Investing.com - U.S. Stock futures were higher overnight trading on Monday, with major benchmark averages remaining closed during regular hours for a public holiday...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (5)
Matt Silverstein
Matt Silverstein Mar 09, 2021 12:10AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
lol why do they change the title of old articles instead of just updating situations with new articles? makes no sense to ne lol
Matt Silverstein
Matt Silverstein Mar 09, 2021 12:10AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
lol they did it again! this same article has had 3 different titles running the games from steady to falling to rising all before bothering to just right a new article
Anel Diaz
Futures71 Mar 08, 2021 11:29PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
futures up big time already.
Elvis Durant
Elvis Durant Mar 08, 2021 9:59PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Recovery process underway............."Leave it there".....
Junk Man
Junk_Man Mar 08, 2021 9:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The government will never say anything negative... Even if we're falling off a cliff, they will say everything is under control.... Until it's not...
Frederick Chotsky
Chotsky Mar 08, 2021 9:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I'm from the government, and I'm here to help.
Elvis Durant
Elvis Durant Mar 08, 2021 9:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
alex gallegos
alex gallegos Mar 08, 2021 9:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Tell us what you see as wrong and your plans to correct 👌 it.
Joel Schwartz
Joel Schwartz Mar 08, 2021 9:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
They can’t come out and admit that rising yields make the $30T national debt completely unsustainable and that they will have to cut services and/or raise taxes.
Ronald Warren
Ronald Warren Mar 08, 2021 8:52PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
They're all red dummy!!
Jokers R Us
Jokers R Us Mar 08, 2021 8:52PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
barely red is the new green
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email