A gauge of global shares slipped on Wednesday after back-to-back gains as investors digested the latest earnings report, while Treasury yields climbed as British inflation data raised expectations of further interest rate hikes by central banks. hardened.
US stocks were off their opening lows on Wall Street and the S&P 500 was slightly above the unchanged mark, though the tone was defensive with gains led by the utilities sector.
Also there was a decline of 4.14 percent in the capping gain Netflix The streaming video company reported quarterly results, while Tesla declined 0.75 percent after the electric vehicle maker cut prices for the sixth time this year after its earnings closing bell.
The Dow Jones Industrial Average fell 65.17 points, or 0.19 percent, to 33,911.46; The S&P 500 added 3.31 points, or 0.08 percent, to 4,158.18 and the Nasdaq Composite added 26.00 points, or 0.21 percent, to 12,179.41.
Expectations of more hikes from central banks lifted yields after Britain reported a modest fall in inflation in March but remained the only country in Western Europe in double digits. Eurostat said inflation in the euro area also eased, but underlying readings remained very high.
The two-year gilt yield eased 0.2 basis points to 3.820 per cent, the highest since March 7, after hitting 3.877 per cent.
The data reinforced expectations of more hikes from the Bank of England and the European Central Bank (ECB), according to CME’s FedWatch tool, while market participants priced in a 25-basis-point rate hike from the US Federal Reserve at its May meeting. is of. ,
“There is an acceptance in the market that rate hikes are going to continue, at least for a while, and that takes time,” said JJ Kinahan, CEO of IG North America in Chicago.
“It looks like most people are adjusting to about 25 basis points, so that gives you a couple of weeks of news like this before people are like uh-oh.”
The yield on 10-year Treasury notes rose 3.6 basis points to 3.608 percent after reaching 3.639 percent, the highest since March 22.
The two-year US Treasury yield, which typically moves in tandem with interest rate expectations, rose 7 basis points to 4.269 percent.
A rise in rates weighed on equities, as the STOXX 600 slumped from a 14-month high, while Britain’s FTSE 100 closed 0.13 per cent after the inflation data.
The pan-European STOXX 600 index closed down 0.10 percent and MSCI’s gauge of shares around the world shed 0.16 percent.
A host of Fed speakers are scheduled to deliver remarks over the rest of the week, before officials enter a blackout period on April 22 ahead of the central bank’s May 2-3 meeting.
The dollar has also strengthened on expectations of a Fed hike, which is showing signs of stabilization after five consecutive weeks of decline.
The dollar index rose 0.197 percent, while the euro fell 0.14 percent to $1.0956.
The Japanese yen weakened 0.43 per cent to 134.70 against the greenback, while sterling was trading at $1.2439, up 0.12 per cent on the last day.
In turn, the strength of the dollar helped keep crude prices under check, as did concerns that a Fed rate hike could stifle growth and dampen demand.
US crude recently fell 1.77 per cent to $79.43 a barrel and Brent was at $83.33, down 1.7 per cent on the day.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)