Markets: Global stock price rises halted, US yields reach new highs
Summarize
・10-year US Treasury yields are approaching a 16-year high
・An optimistic view of technology will anticipate NVIDIA's performance and raise European and Asian stock prices
・The yen rose slightly after the meeting between Bank of Japan Governor Ueda and Prime Minister Kishida
exhaustive
US bond yields, which serve as an indicator, reached a high level for the first time in about 16 years due to concerns that interest rates might remain high over a long period of time, and since the safe haven dollar remained steady, the rebound in world stocks stalled on Tuesday. Close to a high price for the first time in 10 weeks.
S&P 500 Index $S&P 500 Index(.SPX.US$ fell 0.28%, Dow $Nasdaq Composite Index(.IXIC.US$ The average of 30 industrial stocks fell 0.51%, and the Nasdaq Composite Index remained almost unchanged.
Analysts at TD Securities stated that Chairman Powell “is unlikely to show direction in September, but there is a high possibility that he will suggest a long-term interest rate hike to ensure a decline in inflation,” referring to the next policy meeting in September.
However, what came into the limelight again was US bonds, and the 10-year bond yield, which is an indicator, rose to 4.366%, reached a high level since 2007, rose almost 40 bps from the beginning of the month, and then fell to 4.318%.
Regarding the US central bank, he added, “We had an optimistic July, but now we recognize that what the Fed has been saying over a long period of time about interest rate hikes is true.”
NVIDIA BOOST
In European stocks, Nvidia, the world's most valuable chipmaker, is ahead of quarterly results on Wednesday $NVIDIA(NVDA.US$ The rise was driven by a 2% rise in the high-tech sector due to optimism surrounding it.
Moody's also received similar movements, and in response to the fact that S&P Global lowered credit ratings late on Monday and revised the prospects of multiple financial institutions, attention was also drawn to US bank stocks. The view was expressed that there is a high possibility that the creditworthiness of the same sector will be tested due to funding risks and declining profitability.
While the market is wary of intervention, yield movements are also increasing pressure on some low-yield currencies.
The yen is also subject to intervention surveillance, and it rose slightly due to talks between Bank of Japan Governor Ueda Kazuo and the Prime Minister. At the end, 1 dollar = 145.855 yen, which was about 0.24% higher.
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