Global Markets:
● Asian Stock Markets : Nikkei up 1.33%, Shanghai Composite down 0.93% Hang Seng down 0.50% ASX down 0.74%
● Commodities : Gold at $4,318.76 (0.01%) Silver at $64.453 (-0.78%), Brent Oil at 102.18 (-0.86%), WTI Oil at 91.39 (-0.86%)
● Rates : US 10-year yield at 5.116, UK 10-year yield at 5.3532, Germany 10-year yield at 3.4395
News & Data:
● (USD) Crude Oil Inventories 3.0M to 0.7M expected
Markets Update:
Stock futures were little changed Wednesday night after a sharp rise in Treasury yields triggered a market sell-off and increased expectations for another Federal Reserve rate hike.
S&P 500 futures edged up 0.02%, while Nasdaq-100 futures gained 0.08%. During regular trading, the S&P 500 fell 0.8%, while the Nasdaq Composite dropped 1.1%, ending a four-day winning streak.
In Asia-Pacific trading, Japan’s Nikkei 225 rose 0.64% after a three-day holiday, while the Topix slipped 0.17%. Australia’s S&P/ASX 200 declined 1.33%. Hong Kong’s Hang Seng fell 0.29%, and mainland China’s CSI 300 dropped 0.79%. South Korean markets were closed for a holiday.
The 10-year Treasury yield climbed to 5.135%, its highest level since July 2007, while the two-year yield reached 4.947%, its highest since May 2024. CME FedWatch data showed markets pricing in a more than 68% chance of another Fed rate hike in October, up from about 49% a week earlier.
Oil prices also advanced, with Brent crude settling 3.9% higher at $103.08 a barrel and WTI gaining 1.8% to $92.16.
Strong U.S. business activity data raised concerns that inflation could remain elevated. Investors will watch weekly jobless claims Thursday, along with earnings from Darden Restaurants and Costco Wholesale.
Upcoming Events:
● 12:30 PM GMT – CAD Retail Sales m/m
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