Tech selloff drives flight to safe-haven bonds, Arkea Asset Management says
TLT•Arkea Asset Management said a technology selloff drove investors toward defensive European equities and safe-haven bonds. The Nasdaq fell more than 3% over the week, while the CAC 40 rose about 2.1% and the Stoxx 600 gained 1.7%.
1. Markets rotate defensively
Arkea Asset Management’s November 10 analysis said investors moved toward defensive European equities and safe-haven bonds as they questioned the financing and monetization timelines for AI investment. The Nasdaq fell more than 3% over the week, while the CAC 40 rose about 2.1% and the Stoxx 600 gained 1.7%.
2. Yields and Fed expectations
The US 10-year Treasury yield eased to around 4.85%, reflecting lower oil prices, reduced fiscal stimulus expectations and demand for protection. Markets priced an approximately 80%-84% probability of a 25-basis-point Federal Reserve rate increase in December following strong employment data.
