A slight lull in US bond rates boosted European stocks

A slight lull in US bond rates boosted European stocks

Las European bags They started in positive territory this Thursday, driven by the decline of Oil prices and below-expected US jobs data which led to a decrease in the yield of Treasury bonds in that country, from returning the highest point in 16 years.

Asian stocks also experienced a rebound from its 11-month low which follows the upward trend of Wall Street although Chinese markets remain closed for holidays.

In recent weeks, bond yields have been rising as investors reassess whether the Federal Reserve will keep interest rates high for a long time when inflation continues to exceed targets and the economy shows stability.

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Therefore, the yield of 10-year bonds reached the highest level in 16 years, which reached 4.884%, and then moved around 4.7498%, after a slowdown in bond sales due to a private US employment report was weaker than expected and a 5% drop in oil prices.

Europe and its actions

The pan-European index STOXX 600 saw a slight change of less than 0.1%, while the global scale of MSC shares I registered an increase of 0.2%, recovering from the previous session where it hit the lowest since the end of March.

Investors are paying close attention to US employment data to see if bond selling will continue. Later in the day, Initial jobless claims will be released, and nonfarm payrolls and the unemployment rate are expected on Friday.

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“The big unknown is: Will yields continue to rise and at what point will they cause significant economic damage? “said Baylee Wakefield of Aviva Investors. “If we see more positive signs in non-farm payrolls on Friday, investors will be less worried about a potential rate hike at the end of the year.”

In the currency market, the dollar index remained around 106.83 units, after hitting a high of 107.34 earlier in the week. The euro traded steady at 1.05035 dollars and the yen was traded at 149 units per dollar. Meanwhile, oil prices fell by approximately 1.5%, while gold saw a slight decrease to $1,819.3.

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