Economic News, Page 15

Rising US yields, along with the fears of a global economic slowdown have pressured global stock markets last week. Is this the start of a correction or a recession?

With mortgage rates now knocking on the door of 5%, geo-political risk could see more upside for yields and rates, the Housing Sector in the cross-fires.

U.S. Treasury yields snapped back on Friday as U.S. stocks rebounded from a steep sell-off earlier in the week. The rise in yields was fueled by investors who reversed their safe-haven buys of Treasurys during the height of the stock market sell-off. Bond yields move inversely to prices.

On Thursday, U.S. President Trump said that, “It’s a correction that I think is caused by the Fed and interest rates. ”“The first two weeks of October are historically biased to the downside – they are usually cleaning up a sell-off from September. We didn’t get much of one this

Looking at it another way, the S&P 500 Index is now down six straight trading sessions. It is also trading below its 200-day moving average for the first time since April. The Dow has lost more than 1300 points in two-days. At one point during the trading session, the NASDAQ

The steep drop in U.S. equity markets drove investors to seek shelter in the safety of U.S. Treasury markets. This drove down yields which made the U.S. Dollar a less-desirable investment.

The technology sector was the biggest drag on both the S&P 500 Index and the Dow with the NASDAQ Composite posting is largest single day sell-off since June 24, 2016. The overall tech sector in the S&P 500 posted its worst day in seven years, falling 4.8 percent.

On Wednesday morning the markets are dominated by mixed dynamics. Political events in Europe have somewhat drawn attention from the U.S. debt markets and there is still pressure on the bonds.

Traders returned from Monday’s Columbus Day holiday by driving the yield on the benchmark 10-year Treasury note above 3.25 percent in early trading, returning to its highest level since 2011. The yield on the 30-year Treasury bond rose above 3.43 percent, its highest level since 2014.

Italy’s 10-year bonds now yield 3.63%, just 1.02% below Greece. German 10-year yields are 0.54% despite almost doubling this year. How can this spread affect global equity markets?

The S&P500 saw the biggest change since 1999. What might be the impacts of changes on investors? There are many of them, and in the long run, many of them are crucial.

The Euro rose due to an escalation of tensions between the European Union and Italy. China’s Yuan weakened as Beijing’s move to spur more lending failed to ease concern about economic growth.

Last week, it was rapidly rising Treasury yields drawing money out of stocks and raising concerns over future earnings due to increasing financing costs. This week, the focus could shift to the consumer. This is because of rising mortgage rates for homeowners and buoying credit card bills for the typical

Chinese stocks tumble on Monday morning despite the PBOC bank’s reserve requirement ratio reduction and dropped more than 4%. Global stocks trade lower.

On the MacroFor the Dollar, economic data through the week includes September wholesale inflation numbers on Wednesday, September consumer inflation and the weekly jobless claims numbers on Thursday, with September import and export prices and prelim October consumer sentiment numbers due out on Friday. Outside the stats, FOMC member chatter

U.S Treasury yields failed to spur a 6th consecutive rise in mortgage rates last week, with geo-political risk likely to provide relief in the week ahead.

While the benchmark 10-year Treasury yield hit its highest level since 2011 on Friday, the U.S. Dollar Index was struggling. Perhaps this indicates a decoupling by the dollar and Treasury yields. If the run up in Treasury yields begins to level off then we can expect to see a weaker

The Labor Department reported the economy added 134K jobs in September versus the 185K estimate while revising August’s nonfarm payroll number up dramatically, to 270,000 form 201,000. In other news, the Bureau of Labor Statistics and the U.S. Census said the U.S. Trade Balance deficit increased $3.2 billion in August

The sudden rise in U.S. Treasury yields drove all three major U.S. stock indexes sharply lower on Thursday with the tech-based NASDAQ Composite posting its biggest daily drop since June 25.

Take a moment to think about it, but can you recall a Non-Farm Payrolls report this year that has produced an unusually volatile reaction in the stock market? I can’t. I remember most as non-events with most investors focused on the Average Hourly Earnings component of the report and little