Stories
Global Stocks Mixed as Bond Sell-Off Deepens Ahead of Crucial US Jobs Data
- •European shares edged higher despite a global bond sell-off, while Asian markets showed mixed results with Hong Kong's Hang Seng hitting a July low.
- •The yield on the 10-year US Treasury reached 5.24% after hitting 5.34% on Thursday, its highest since 2002, driven by inflation and rising US government debt.
- •Analysts suggest the US 10-year Treasury yield could rise further to 5.5% to 6% due to resilient economic growth, putting downward pressure on stock markets.
- •Oil prices declined despite increased US military presence in the Middle East and President Trump's threats against Iran, with Brent crude falling below $100 a barrel.
- •Investors are closely watching the US monthly jobs report for September for insights into a potential October interest rate hike by the Federal Reserve.
Key Questions Answered
The yield on the 10-year US Treasury reached around 5.24 per cent on Friday after peaking at 5.34 per cent on Thursday, which is its highest level since 2002. This increase was driven by inflationary pressures from the global energy shock related to the Iran war and growing US government debt, leading investors to demand higher returns.
European shares edged higher with Britain's FTSE 100 up 0.5 per cent, France's CAC 40 rising 0.6 per cent, and Germany's DAX gaining 0.8 per cent. In Asia, performance was mixed as Japan's Nikkei 225 fell 0.9 per cent, Hong Kong's Hang Seng dropped 2.6 per cent to its lowest level since July, while South Korea's Kospi and Australia's S&P/ASX 200 both added 0.5 per cent and 0.8 per cent respectively.
Oil prices declined early Friday as ongoing uncertainties surrounding the prospect of a de-escalation between the United States and Iran weighed on the market. Brent crude fell 2.3 per cent to settle just below USD 100 a barrel at USD 99.95, though this remains well above late February levels before the conflict began.
