Elevated yields, higher oil prices test global stocks as rate fears persist
SPY•Oil rose 1% to $106 a barrel while U.S. 10-year yields hovered near a 19-year high of 5.27%, putting pressure on global stocks. The STOXX 600 gained 0.3%, while U.S. stock futures were steady.
1. Yields and oil rise
Oil prices rose and bond yields remained near multi-year highs as investors weighed persistent rate concerns. French 10-year yields were at 4.7619%, their highest since 2008, while U.S. 10-year yields hovered near 5.27%, a 19-year high. Both were set for sharp monthly increases.
2. Stocks mixed
European technology stocks helped the STOXX 600 rise 0.3%, while Nasdaq and S&P 500 futures were steady after a weak Monday. Brent crude rose 1% to $106 a barrel, and MSCI’s global equities index was at a more than one-week low.
3. Rate outlook in focus
Investors were watching U.S. inflation and employment data due later in the week. Markets saw a 72% chance of at least a 25-basis-point Federal Reserve rate hike in October. Australia’s central bank raised rates to a 15-year high, as expected.
