Stocks slip, bond yields hit multi-year highs on inflation fears | – #Stocks #slip #bond #yields #hit #multiyear #highs #inflation #fears

LONDON, Feb 28 (Reuters) – Consumption prices in France After hitting record highs and accelerating in Spain, global shares fell on Tuesday and bond yields hit multi-year highs, adding to expectations that major central banks will have to keep tightening.

of France European Union consumption adjusted by prices rose to a record high of 7.2% in February, while in Spain the EU-aligned 12-month inflation It rose to 6.1% from 5.9% in January, beating the 5.5% expected by analysts polled by Reuters.

Pan-Europe The STOXX 600 (.STOXX) index fell 0.4%, though it is still on track for a 1.7% gain this month, its fifth positive month.

MSCI’s all-world index of global shares ( .MIWD00000PUS ) fell 0.1% to near an almost seven-week low on Friday.

The index fell almost 3% on the month, as equity markets rose on expectations that major central banks are nearing the end of a tightening cycle. january was set to write off some of the gains from

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A series since then USA and Eurozone economic data reinforced views that interest rates will rise further and remain high for longer.

Matthias Scheiber, global head of portfolio management for the Systematic Edge team at Allspring, said: “The Fed is expected to hold interest rates at around 5.5% until October of this year.” “This is quite a change from the start of the year when markets were pricing in a peak rate of 4.8%.”

Fed funds futures are fully pricing in a 25 basis point hike from the Fed next month, approx 20With the % chance of a bigger 50 basis point increase, ECB short-term euro interest rate forwards for December 2023 rose to 3.875%. The deposit rate was 3.975% by the end of the year, up from 3.775% on Thursday last week.

MSCI’s broadest index of Asia-Pacific shares outside Japan ( .MIAPJ0000PUS ) traded down 0.4% at 511.39, near an eight-week low touched on Monday.

Germany’s benchmark for the euro zone in bond markets 10 annual yield rose 7 basis points (bps) to 2.66%, the highest since July 2011. France and in Spain 10 annual benchmark returns hit multi-year highs.

Eurozone broad consumption for February prices preliminary data on inflation is due on Thursday, while investors USA more information about the state of the economy on Wednesday and Friday, respectively USA They will receive data from the February survey on ISM production and services.

“It’s one thing for the Fed to cut growth and inflation, but what they don’t want is a hard landing,” Allspring’s Scheiber said.

“This week’s ISM data will give us a little more clue as to how the US economy has been dealing with high interest rates so far,” Schaeber added.

of the United States 10 annualized yield rose 3 bps to 3.9473% and rose more than 40 bps in February, the biggest monthly jump since September.

On the foreign exchange market, sterling was last up 0.2% at $1.2086, and on Monday Britain’s European Union Post-Brexit Big, up 1% after striking a new trade deal with Britain illuminated the prospects for the economy.

The euro was up 0.1% at 1.0619 after rising 0.6% on Monday. dollars has been

which measures the US currency against six other peers dollars index was steady at 104.64 and was poised to snap a four-month losing streak after rising 2.5% in February.

US crude oil rose 1% to 76.46 dollars/barrel, and Brent oil increased by 0.7% on the day and reached $83.02.

Elsewhere, Chicago wheat futures were hit by rain in parts of the U.S. winter wheat belt and Russia–Ukraine it was near a 17-month low on optimism over an export deal.

Gold fell about 6% in February to $1,810 an ounce.

Reporting by Samuel Indyk in London and Ankur Banerjee in Singapore; Edited by Simon Cameron-Moore and Christina Fincher

Our standards: Thomson Reuters Trust Principles.

2023-02-28 14:28:35
Source – reuters

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